Assume a manufacturing company provides the following information from its master budget for the month of May:
Unit sales 6,700
Selling price per unit $ 42
Direct materials cost per $ 15
Direct labor cost per unit $ 12
Predetermined overheard rate (based on direct labor dollars)75%
If the company maintains no beginning or ending inventories, what is the budgeted gross margin for May?
Multiple Choice
$33,500
$40,200
$6,700
$30,200