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Suppose Steel Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Steel Handles projects sales of 600 10-inch skillets
Suppose Steel Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $34. Steel Handles projects sales of 600 10-inch skillets per month. The production costs are $8 per skillet for direct materials, $2 per skillet for direct labor, and $1 per skillet for manufacturing overhead. Steel Handles has 25 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 $1,900 per month. Steel Handles is budgeted to produce 815 skillets in July. Compute the total amount budgeted for product costs for July. O A. $6,600 OB. $8,965 OC. $8,650 OD. $9,240
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