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).How many unskilled labor hours will be budgeted for August?

Question

Quizplus · Accepted Answer

To calculate the budget for unskilled labor, we need to multiply the number of units by the hours required per unit and the rate paid per hour. 
For August: 
Labor hours per unit = 1.3 (unskilled) + 2.2 (skilled) = 3.5 hours
Total labor hours required = 7,000 units x 3.5 hours = 24,500 hours
Budget for unskilled labor = Total labor hours x rate for unskilled labor
Budget for unskilled labor in August = 24,500 hours x $8/hour = $196,000
Therefore, the answer is B) 9,100.