Problem
Jaybird Inc produces leather handbags. The sales budget for the next four months is July 5600 units, August 7800, September 8300, OCtober 8100. Jaybird Inc's ending finished goods inventory policy is 10% of the following month's sales. Each handbag requires 16 hours of unskilled labor (paid $15 per hour) and 2.2 hours of skilled labor (paid $22 per hour). How much is total labor cost during the three months July through September?