Assume Projected Actual for Labor Expense in the Current Year

Assume projected actual for labor expense in the current year is $1,000,000 and a 5.0% across-the-board salary increase will be given to employees on the first day of the new fiscal year. How much should be budgeted for salaries and wages in the next fiscal year?

A) $1,000,000
B) $1,000,500
C) $1,005,000
D) $1,050,000
E) None of the above