The correct answer is $540,000.
In order to calculate the budgeted cost of direct labor for the month you must first calculate the amount of labor that is required.
In this example there are 12,000 unites being produced and each unit requires 30 minutes of labor. The total amount of labor is 12,000 x .5 hours = 6,000 hours of labor.
The cost of the labor is $90 per hour, so the cost of the budgeted labor is $90 x 6,000 hours, which is a total of $540,000. The total budgeted cost of direct labor for the month is $540,000.
