Suppose Steel City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $30. Steel City projects sales of 525 10-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. Steel City has 70 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40% of the next month's sales. Selling and administrative expenses for this product line are $1,000 per month. Steel City is budgeted to produce 665 skillets in July. Compute the total amount budgeted for product costs for July. A. $6,440 B. $8,820 OC. $6,300 OD. $7,980