The direct labor in the planning budget for May would be closest to:

A) $19,720
B) $19,770
C) $19,872
D) $19,822

The direct labor cost per unit is given as $14.50. The total number of units to be produced in May is 2,400. Therefore, the total direct labor cost in the planning budget for May would be:
$14.50 x 2,400 = $34,800

However, it is stated in the question that 60% of the direct labor cost is paid in the month of the production and the remaining 40% is paid in the following month. Therefore, the direct labor cost in the planning budget for May would be:
$34,800 x 60% = $20,880

But, the question asks for the direct labor cost in May, not the total direct labor cost for May and June. So, we need to subtract the 40% that will be paid in June:
$20,880 - ($34,800 x 40%) = $20,880 - $13,920 = $6,960

Therefore, the direct labor in the planning budget for May would be closest to $19,720 (the closest answer choice to $6,960).

Cost = Fixed cost + (Variable cost per unit × q)
= $0 + ($3.40 × 5,800)= $19,720