Smith Corporation makes and sells a single product called a Pod. Each Pod requires 3.3 direct labor-hours at $11.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.

In June the company has budgeted to produce 23,900 Pods. Budgeted direct labor costs incurred in June would be: