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). What will be the total labor cost for the month of August ?

a) $161,000

b) $121,500

c) $231,000

d) $303,800