Soxy company is considering its forthcoming projections for budget purposes.Soxy manufactures a product requiring 0.5 grams of platinum per unit. The cost of platinum is approximately $360 per gram. Soxy maintains an ending inventory of platinum equal to 10% of the following month's production. The following data were taken from the most recent quarterly production budget.

JulyAugustSeptember

Planned Production (units)1,0001,100980

If each unit takes 2.5 direct labour hours to produce and Soxy's cost per labour hour is $15, determine the amount that should be budgeted for direct labour in September.

a.

$ 5,880

b.

$ 14,700

c.

$ 18,375

d.

$ 36,750

e.

$115,500