Use the following information to answer questions 4 - 6

The Sierra Furniture Co. manufactures and sells three desks, Standard, Executive, & Chairman. Their accounting office has gathered the following data in order to prepare budgets for the next year:

Next year projected sales

Product	Units	Price
Standard	15,000	$400
Executive	10,000	$500
Chairman	8,000	$600

The following direct materials are expected to be used in the two products:

	Material Used per Desk
Direct Material	Standard	Executive	Chairman
Oak (pounds)	4	6	7
Pine (pounds)	8	5	10

Projected DM data

Direct Materials	Purchase Price/pound	Inventories (January 1)	Inventories (Dec 31)
Oak (pounds)	$25	4,000 lb	4,600 lb
Pine (pounds)	$15	7,000 lb	5,500 lb

Target Inventories

Product	January 1	December 31
Standard	2,000	2,500
Executive	4,000	3,800
Chairman	1,500	1,800

Projected direct labor requirements and rates

Product	Hours Per Unit	Rate Per Hour
Standard	4	$10
Executive	5	$15
Chairman	6	$20

Budgeted FOH rate is $6/direct labor hour.

Determine the DL budget for Sierra Furniture Co.?

Question 5 options:

a)

$620,000

b)	$2,310,000

c)	$2,351,000

d)

$735,000

e)

$996,000