Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 6,000 February 7,000 March 8,000 Ikon budgets for four direct labor hours per bicycle, at an average cost of $17.00 per hour. Variable factory overhead is applied at the rate of $10.25 per direct labor hour. Fixed overhead is expected to run $110,000 per month, which includes $10,000 per month of noncash expenses related to depreciation. Determine the expected cash outflow for direct labor in February. O A. $475,000 . $28,000 O C. $32,000 O D. $7,000 O E. none of the above