Cruncher Construction manufactures rebar ties to be used on major construction projects in the Washington area. They are trying to determine how much labor they need and so they are preparing their direct labor budget for the next two months with these details:

• Each unit (tie) of output requires 0.50 direct labor-hours.
• The direct labor rate is $8.20 per direct labor-hour.
• The production budget calls for producing 1,700 units (ties) in March and 1,920 units (ties) in April.
• The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor workforce for at least 1,760 hours in total each month even if there is not enough work to keep them busy. It's just good business!

What would be the total combined direct labor cost for the two months?

$26,758.00

$28,580.50

$28,864.00

$26,474.50