Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,800 units, August 7,000, September 8,100, October 8,400. Each handbag requires 1.5 hours of unskilled labor (paid $15 per hour) and 3.1 hours of skilled labor (paid $23 per hour). What will be the total labor cost for the month of August?

Multiple Choice

• $161,000

• $499,100

• $656,600

• $140,940