Teller Co. is planning to sell 1,000 boxes of ceramic tile, with production estimated at 800 boxes during May. Each box of tile requires 40 pounds of clay mix and a half hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $10.00 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Teller has 4,000 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory.

What is the total amount to be budgeted for direct labor for the month?

	a.	$2,610
	b.	$2,700
	c.	$4,000
	d.	$41,760