Jaybird Incorporated produces leather handbags. The sales budget for the next four months is: July 5,200 units, August 7,600 units, September 7,500 units, and October 8,300 units. Jaybird Incorporateds ending finished goods inventory policy is 10% of the following months sales. Each handbag requires 1.9 hours of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (paid $23 per hour). What will be the total labor cost for the month of August?

$38,709

$774,939

$694,649

$772,769