Clydes Dog Biscuit Bakery manufactures boxes of dog treats. The following is budgeted production for the last six months of 2022:

	July	August	September	October	November	December
Budgeted production (boxes)	78,000	79,400	80,200	82,000	81,500	82,800

The firm also provided the following information:

• Company policy calls for the ending raw materials inventory of a month to equal 25% of the next months raw materials production needs.
• Each box of dog treats requires 0.8 pounds of direct materials, at a cost of $2 per pound
• Each box of dog treats requires 0.25 direct labor hours, at a cost of $15 per DL hour.
• Variable OH is $1.80 per DL hour. Fixed OH is $71,820 per month.

The budgeted total Factory OH cost for October is:

Group of answer choices

$108,720

$107,910

$108,495

$106,920

$107,550