Presented is selected second quarter budget data for the Arnold Company. Sales April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 units May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 units June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 units Additional information: Each unit of finished product requires three pounds of raw materials. Arnold maintains ending finished goods inventories equal to 20% of the following months budgeted sales. Arnold maintains raw materials inventories equal to 25% of the following months budgeted production. April 1 inventories are in line with Arnolds inventory policy. Arnolds budgeted purchases (in pounds) for April are 72,900.

Presented is additional information for the Arnold Company (refer to question 4): Price per pound of raw materials $20 Direct labor per unit of finished product 0.40 hours at $25 per hour Total monthly factory overhead $200,000 + $10 per direct labor hour Arnolds total manufacturing cost budget for April is (the right answer according to the textbook is 1828000). Please explain with steps.