Problem
Crane Toys is planning to sell 164 action figures and to produce 156 action figures in July. Each action figure requires 82 grams of plastic and a half hour of direct labor. The cost of the plastic used in each action figure is $5 per 82 grams. Employees of the company are paid at a rate of $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Crane Toys has 73800 grams of plastic in its beginning inventory and wants to have 65600 grams in its ending inventory. What is the amount of budgeted direct labor cost for the month of July?