Yorkshire Air Co. is working on its direct labor budget for the next two months. Each unit of output requires 0.20 direct labor hours. The direct labor rate is $7.00 per direct labor hour. The production budget calls for producing 6,600 units in June and 6,400 units in July. If the direct labor workforce is fully adjusted to the total direct labor hours needed each month, what would be the total combined direct labor cost for the two months?

Options:

1. $18,375
2. $18,200
3. $18,865
4. $18,690