Assume that a company provided the following information and assumptions from its master budget:

Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month.

Production budget: The ending finished goods inventory is always 25% of next months unit sales.

Direct labor budget: The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18.

What is the budgeted direct labor cost for July?

Multiple Choice

$474,000

$486,000

$482,250

$479,250