Grisham Products Inc. manufactures engines for small scooters. At 30 September, the company had 2500 engines in inventory. The companys policy is to maintain an ending inventory equal to 8 per cent of next months sales. Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $0.30 per minute. Grisham applies overhead to engines at a rate of $0.15 per direct labour minute.

The company expects the following sales activity for the fourth quarter of the year:

October 12 000 units

November 20 000 units

December 35 000 units

What is the projected applied manufacturing overhead cost for November?

$143 100

$126 900

$42 930

$153 900