Double Boe & Co. is planning to sell 800 boxes of ceramic tile (at $40 per box), with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Factory overhead is applied at a rate of 110% of direct labor costs. Double Boe & Co. has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. Selling and administrative expenses are all variable and are 20% of Sales What is budgeted net income for May? O A. $12,880 OB. $12.720 O C. $7,047 OD. $6,480