Labor cost-unskilled labor

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Reference no: EM13823903

Albertville Inc produces leather handbags. The sales budget for the next four months is: July 5,000 units, August 7,000, September 7,500, October 8,000. Albertville Inc's ending finished goods inventory policy is 10% of the following month's sales. 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 labor cost for the month of August?

a. $24,675

b. $225,680

c. $303,800

d. $305,970

Reference no: EM13823903

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