Canada Company makes a household appliance with model number L$800.$ The goal for $2020$ is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L$800$ units that can be produced. The industry market size for appliances increased $10\%$ from $2022$ to $2023.$ The following additional data are available for $2022$ and $2023$:

$20222023$

Units of L$800$ produced and sold $12,00037,950$

Selling price $$145$ $$345$

Direct materials $($square feet$)36,00087,000$

Direct material costs per square foot $$13$ $$33$

Manufacturing capacity for L$800($units$)13,00039,850$

Total conversion costs $$866,250$ $$836,850$

Conversion costs per unit of capacity $$29$ $$29$

$36,000$ X

What is the cost effect of the growth component for direct materials?

A$)$ $$291,400$ U B$)$ $$1,326,000$ F C$)$ $$1,326,000$ U D$)$ $$291,400$ F