Sellars Inc. manufactures widgets. At 30 June, the company had 2000 widgets in inventory. The company's policy is to maintain a widget ending inventory equal to 10 per cent of next month's sales. In addition, each widget manufactured requires 6 minutes of assembly and inspecting time at a cost of $.25 per minute.

The company expects the following sales activity for the third quarter of the year:

July 25 000 units

August 38 000 units

September30 000 units

What is the projected direct labour cost for August?

$58 200

$55 800

$57 000

$61 500