STO, Inc. produces pet products. The company expects to produce and sell 12,000 units of it most popular product next year. Each unit produced requires 1.5 pounds of direct material. Each pound of direct material costs $2.20 from the supplier. STO would like 500 pounds of direct material on hand at the end of each month but expects to only have 250 pounds of raw material on hand at the beginning of the year. All direct material purchases are made on account and carry payment terms of net 30. Each unit produced requires 2.0 hours of direct labor time. Direct laborers are paid at an average wage rate of $28 per hour. All direct labor wages are paid in the week following the week they are incurred. Additionally, the company has developed the following cost behavior formula for manufacturing overhead expenses: total annual manufacturing overhead = $1.80 per unit produced x number of units produced + $21,000. Included in the fixed costs is $4,500 of expected annual depreciation. All cash manufacturing overhead costs are paid in the period in which they are incurred. Which of the following is correct with regard to the above information? The expected direct material purchases for the year are $40,150. The budgeted direct labor costs for the year are $672,000. The budgeted manufacturing overhead costs for the year are $42,600. The budgeted manufacturing overhead costs included as a disbursement in the overall cash budget are $38,100. All of the above statements are correct