Multiple Choice

• A, $31,472

• B , $281,000

• C, $786,800

• D, $534,000

Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: $ 118 Budgeted selling price per unit Budgeted unit sales (all on credit): April May June July 7,800 9,400 14,000 12,100 Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output 3 pounds $ 3.00 per pound 2.8 direct labor-hours Direct labor wage rate $25.00 per direct labor- hour Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The estimated direct labor cost for May is closest to