Ontario Inc. produces leather travelbags. The sales budget for the next four months is: July 5,500 units, August 7,000, September 7,800, October 8,400. Ontario Inc.s ending finished goods inventory policy is 10% of the following months sales. Each travelbag 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

• $31,860

• $511,598

• $589,718

• $591,888