Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,200 units, August 7,100, September 7,700, October 8,700. Each handbag requires 1.4 hours of unskilled labor (paid $18 per hour) and 2.9 hours of skilled labor (paid $24 per hour). What will be the total labor cost for the month of August?

Multiple Choice

• $673,080

• $126,360

• $494,160

• $163,300