Ernest Company makes and sells a single product, Product Z. Each unit of Product Z requires 1.3 hours of labour at a labour rate of $18.10 per hour. Ernest Company needs to prepare a Direct Labour Budget for the month of August.

The company has budgeted to produce 30,000 units of Product Z in August. The finished goods inventories on August 1 and August 30 were budgeted at 600 and 700 units, respectively. What are budgeted direct labour costs to be incurred in August?Show your calculations.