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). How much is total labor cost during the three months July through September?

Multiple Choice

• $1,576,160

• $83,410

• $1,057,530

• $1,589,180