Chase Company's production budget is as follows:

Budgeted sales in units............................................300,000

Desired units in inventory, December 31.........................70,000

.........................................................................370,000

Estimated units in inventory, January 1..........................50,000

Budgeted units of production. .................................320,000

Each unit takes 30 minutes to produce and the standard labor rate is $18 per labor hour. What is Chase's direct labor budget?

a. $2,880,000

b. $2,700,000

c. $10,800,000

d. $5,760,000