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Baugus Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 7,210 units, but its actual level of activity was 7,020 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:                               

                                      Fixed element per month           Variable element per unit

  Revenue                                                     0                                   $36.60           

  Direct labor                                              $0                                  $4.50           

  Direct materials                                           0                                   17.60           

  Manufacturing overhead                           43,000                             1.80           

  Selling and administrative expenses      28,900                                   0.90           

  Total expenses                                  $71,900                                 $24.80           

  Actual results for August:         

  Revenue                                                            $257,400 

  Direct labor                                                       $27,800 

  Direct materials                                                 $130,500 

  Manufacturing overhead                                    $55,100 

  Selling and administrative expenses                   $25,100 

The direct labor in the planning budget for August would be closest to:

A.            $31,590

B.            $27,610

C.            $27,800

D.            $32,445

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