MC TOOLS makes hammers. The requirements to make 1 hammer are:

Materials .5 pounds at a cost of $12 per pound

Labor 6 minutes per hammer at a cost of $10 per hour

Variable Overhead is assigned at 25% of labor and fixed overhead is $260,100 monthly

MC TOOLS sales in March were 510,000 units

Projected Sales are:

An increase of 2% in April (from march sales)

May sales projection are 516,000 units

MC TOOLS finished goods inventory policy is to keep in inventory 40% of next month sales. Actual inventory is 170,000 units. MC TOOLS raw materials inventory policy is to keep in inventory 40% of next month production. Actual inventory is 205,000 pounds. May production is expected to be 518,000 units

REQUIRED:

CALCULATE PRODUCT COST

PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES