Jaybird Inc. produces leather handbags. The sales budget for the next four months is: July 5,600 units, August 7,800, September 8,300, October 8,100. Jaybird Inc.s ending finished goods inventory policy is 10% of the following months sales. Each handbag requires 1.6 hours of unskilled labor (paid $15 per hour) and 2.2 hours of skilled labor (paid $22 per hour). What will be the total labor cost for the month of August?

• $488,050

• $568,340

• $29,830

• $566,170