Suppose Iron Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $30. Iron Handles projects sales of 750 10-inch skillets per month. The production costs are $10 per skillet for direct materials, $4 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Iron Handles has 35 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 2525% of the next month's sales. Selling and administrative expenses for this product line are $1,600 per month. Iron Handles is budgeted to produce 903 skillets in July.

Compute the total amount budgeted for product costs for July.

A) $15,351

B) $12,250

C) $13,622

D) $15,946

Show show work of how answer is calculated.