Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particular product called Xentra appears below:

	Qty	Cost =
Chemical Xeta, gals	15	$	25.00	=$375.00
Chemical Thenta, gals	35	$	27.50	= 962.50
Base material, pound	20	$	1.00	= 20.00
100-lb lined drum	1	$	51.83	= 51.83

Variable factory overhead is estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overhead. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overhead totals $3,500,000 per month. Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs.

Assuming normal production levels, what is the direct materials and direct labor cost per drum?

A. $1,433.33

B. $1,413.33

C. $1,313.33

D. $1,293.33

E. None of the choices are correct