Production estimates for Shelby’s Shoes are as follows for the first five months of the year: Jan 9,000 pairs;

Production estimates for Shelby’s Shoes are as follows for the first five months of the year: Jan 9,000 pairs; Feb 12,000 pairs; March 13,200 pairs; April 15,000 pairs; May 16,200 pairs. It takes ½ hour on average to for direct labor for each pair of shoes made. Each hour of this specialized labor is expected to cost $35 per hour. What amount should the company budget for direct labor costs for January?

$85,000

$115,000

$157,500

$16/5,000

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