Bonita Industries is planning to sell 1000 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $11 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bonita has 3900 pounds of clay mix in beginning inventory and wants to have 3700 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month

$2,585‬

Explanation:

Total budgeted amount for direct labor;

Production is estimated at 470 boxes.

Each box requires 0.5 hours of direct labor

Employees are paid $11 per hour.

= 470 * 0.5 * 11

= $2,585‬

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