Teller Co$.$ is planning to sell $900$ boxes of ceramic tile, with production estimated at $870$ boxes during May. Each box of tile requires $44$ pounds of clay mix and a quarter hour of direct labor. Clay mix costs $$0\mathrm{.}40$ per pound and employees of the company are paid $$12\mathrm{.}00$ per hour. Manufacturing overhead is applied at a rate of $110\%$ of direct labor costs. Teller has $3,900$ 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 manufacturing overhead for the month?

a$.$ $$2,871$

b$.$ $$2,970$

c$.$ $$11,484$

d$.$ $$11,880$

Total direct labor cost $=$ Unit to be produced $$ Direct labor hours per unit $$ Direct labor cost per unit

$(2)=8200\mathrm{.}2512=2610$

Manufacturing overhead $=2610410\%=2871$ From where thay get $0\mathrm{.}25?$ In the first setp