Question

Jillian Incorporated produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, and October 8,000 units. Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour). How much will be paid to skilled labor during the three months July through September?

Answer 1

Jillian Incorporated will pay a total of $643,500 to skilled labor for the production of leather handbags during the months of July through September, calculated by multiplying the planned number of handbags by the skilled labor hours per handbag and the skilled labor wage.

Step-by-step explanation:

The student's question is centered around calculating the total payment to skilled labor at Jillian Incorporated for the production of leather handbags during the three months of July, August, and September. To find this, we must multiply the number of handbags planned for production each month by the hours of skilled labor needed per handbag, and then by the skilled labor hourly wage.

Here is the breakdown for each month:

• July: 5,000 units * 2.2 hours/unit * $15/hour = $165,000
• August: 7,000 units * 2.2 hours/unit * $15/hour = $231,000
• September: 7,500 units * 2.2 hours/unit * $15/hour = $247,500

Now, we add the amounts for all three months to get the total payment to skilled labor from July through September:

$165,000 (July) + $231,000 (August) + $247,500 (September) = $643,500.

Therefore, Jillian Incorporated will pay $643,500 to skilled labor during the three months of July through September.