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Unskilled labor paid 8 per hour and 22 hours of skilled

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Jaybird Inc. produces leather handbags. The sales budget for the next four months is: July 5,000 units, August 7,000, September 7,500, October 8,000. Jaybird Inc.'s ending finished goods inventory policy is 10% of the following month's sales. Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour). What will be the total labor cost for the month of August?

a. 305,970
b. 303,800
c. 225,680
d. 24,675

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Accounting Basics: Unskilled labor paid 8 per hour and 22 hours of skilled

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