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 total labor hours will be budgeted for September?

Question

Quizplus · Accepted Answer

For September, the total labor hours = (1.3 + 2.2) hours/handbag * 7,500 handbags = 3.5 hours/handbag * 7,500 handbags = 26,250 hours.