Rockland Corporation Has 22 Employees and Incurs Total Wages and Salaries

Rockland Corporation has 22 employees and incurs total wages and salaries expense of $8,000,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense:
$\begin{array} { | l | r | } \hline \text { Workers' compensation insurance } & 5 \% \\\hline \begin{array} { l } \text { Social security and medical care taxes } \\\text { (employer's share) }\end{array} & 7.65 \% \\\hline \begin{array} { l } \text { Pension and other postretirement costs } \\\text { expense (paid by employer) }\end{array} & 5 \% \\\hline \text { Salaries tax withheld } & 10 \% \\\hline \text { Unemployment taxes expense } & 2 \% \\\hline\end{array}$ In addition, Rockland provides group health insurance for its entire workforce. The cost of this insurance is $600 per month for each employee.

-Some of the payroll-related expenses incurred by Rockland Corporation are mandated by law, rather than negotiated with employees. During the current year, these mandated amounts increased Rockland's payroll-related expenses by approximately:

A) $1,012,000.
B) $960,000.
C) $1,172,000.
D) $1,188,000.