Grisham Products Inc. manufactures engines for small scooters. On September 30, the company had 1,050 engines in inventory. The company's policy is to maintain an ending inventory equal to 15% of next month's sales. Each engine manufactured requires 20 minutes of assembly and inspecting time at a cost of $1.50 per minute. Grisham applies overhead to engines at a rate of $2.50 per direct labor minute. The company expects the following sales activity for the fourth quarter of the year:

October	7,000 units
November	14,750 units
December	28,900 units

What is the projected applied manufacturing overhead cost for November?

a. $737,500

b. $408,125

c. $631,375

d. $843,625