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Waterway Industries is planning to sell 8 0 0 boxes of ceramic tile, with production estimated at 7 7 0 boxes during May. Each box

Waterway Industries is planning to sell 800 boxes of ceramic tile, with production estimated at
770 boxes during May. Each box of tile requires 40 pounds of clay mix and a 0.25 hour of direct
labor. Clay mix costs $0.40 per pound and employees of the company are paid $13 per hour.
Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 3900
pounds of clay mix in beginning inventory and wants to have 5000 pounds in ending inventory.
What is the total amount to be budgeted for direct labor for the month?
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