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Jillian Inc. produces leather handbags. The production budget for the next four months is : July...

Jillian Inc. produces leather handbags. The production budget for the next four months is : July 5,000 units, August 7,000, September 7,500, October 8,000, . 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) $161,000
b) $121,500
c) $231,000
d) $303,800
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Answer #1
Unskilled labor cost for the month of August (7,000 x 1.3 hours x $8 per hour) $ 72,800
Skilled labor cost for the month of August (7,000 x 2.2 hours x $15 per hour) $ 231,000
Total labor cost for the month of August $ 303,800

Answer: $303,800

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