Karon Audio, Inc. manufactures speakers. During March, Karons transactions and accounts included the following:

Raw materials acquired for cash $82,500

Cost of direct materials issued to production 81,900

Costs to ship products to customers 1,000

Direct labor cost incurred 41,000

Total manufacturing overhead incurred 25,000

Raw materials inventory, beginning 3,500

Raw materials inventory, ending 3,600

Work in process inventory, beginning 12,000

Work in process inventory, ending 14,200

Total manufacturing overhead applied 22,000

What is the cost of indirect materials transferred to manufacturing overhead? ( Please show work)

a. $600

b. $500

c. $700