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?

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Quizplus · Accepted Answer

For August, the total labor cost calculation is as follows: Unskilled labor cost = 7,000 units * 1.3 hours/unit * $8/hour = $72,800 Skilled labor cost = 7,000 units * 2.2 hours/unit * $15/hour = $231,000 Total labor cost for August = $72,800 (Unskilled) + $231,000 (Skilled) = $303,800