Traverse Company manufactures and sells women's skirts. Selected data from Traverse's master budget for next quarter are shown below. July August September Budgeted sales in units)........... 6,000 8,000 9.000 Budgeted production (in units).... 8,000 10,500 12.000 Each unit requires 1.5 hours of direct labor, and the average hourly cost of Traverse's direct laboris $10. What is the cost of Traverse Company's direct labor in August? 1. $135.000 2. $180.000 3.5157.500 4. $120.000