It's Hot, Inc. makes one product and it provided the following information to help prepare the master budget for the next six months of operations.
Budgeted unit sales for the next six months are as follows: January = 80,200 units; February = 81,400 units; March = 80,900 units; April = 82,300 units; May = 85,400 units; and June = 84,000 units. The budgeted selling price per unit is $30. All sales are on account. Regarding sales on account, 40% are collected in the month of sale and 60% are collected in the following month. The ending finished goods inventory equals 25% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs.
The direct labor wage rate is $10.00 per hour. Each unit of finished goods requires 1.4 direct labor-hours. Manufacturing overhead is entirely variable and is $4.60 per direct labor-hour.
The budgeted direct labor cost for March is:
a. $1,137,500
b. $1,140,440
c. $1,127,700
d. $1,146,320
e. $1,132,600