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Suppose Iron Handles manufactures cast iron skillets. One model is a 1 0 - inch skillet that sells for $ 2 2 . Iron Handles

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Suppose Iron Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $22. Iron Handles projects sales of 65010-inch skillets per month. The production costs are $5 per skillet for direct materials, $3 per skillet for direct labor, and $4 per skillet for manufacturing overhead.
Iron Handles has 3010-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 30% 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 815 skillets in July.
Compute the total amount budgeted for product costs for July.
A. $9,780
B. $10,140
C. $7,000
D. $7,800
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