A firm budgeted the following amounts for the coming year: Beginning inventory, finished goods
$ 10,000
Cost of goods sold
400,000
Direct material used in production
100,000
Ending inventory, finished goods
25,000
Beginning and ending work-in-process
inventory
0
Overhead is estimated to be two times the amount of direct labor dollars. The amount that should be budgeted
for direct labor for the coming year is
A. $315,000
B. $210,000
C. $157,500
D. $105,000