Jaybird Incorporated produces leather handbags. The sales budget for the next four months is: July 5,500 units, August 7,000 units, September 7,800 units, and October 8,400units. Jaybird Incorporated's ending finished goods inventory policy is 10% of the following month's sales. Each handbag requires 2.2 hours of unskilled labor (paid $15 per hour) and 2.3 hours of skilled labor (paid $22 per hour). What will be the total labor cost for the month of August?

Multiple Choice

$511,598

$31,860

$591,888

$589,718