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Suppose Cook Pro manufactures cast iron skillets. One model is a 10-inch skillet that sells for $32. Cook Pro projects sales of 550 10-inch skillets
Suppose Cook Pro manufactures cast iron skillets. One model is a 10-inch skillet that sells for $32. Cook Pro projects sales of 550 10-inch skillets per month. The production costs are $12 per skillet for direct materials, $2 per skillet for direct labor, and $4 per skillet for manufacturing overhead. Cook Pro has 30 10-inch skillets in inventory at the beginning of July but wants to have an ending Inventory equal to 35% of the next month's sales. Selling and administrative expenses for this product line are $1,100 per month. Cook Pro is budgeted to produce 713 skillets in July Compute the total amount budgeted for product costs for July OA. $9,900 OB. $13,374 OC. $12,834 OD. $10.822
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