Looker Hats is planning to sell 600, and produce felt hats 700 during June. Each hat requires 1/2 yard of felt and 1/4 hour of direct labor. Felt costs $3.00 per yard and employees of the company are paid $20 per hour. How much direct labor should be budgeted for June?
1. $3,500
2. $3,000
3. $2,400
4. $525
5. Cannot be determined from the information given.