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Suppose Steel Handles manufactures cast iron skillets. One model is a 1 0 - inch skillet that sells for $ 3 0 . Steel Handles

Suppose Steel Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $30. Steel Handles projects sales of 62510-inch skillets per month. The production costs are $13 per skillet for direct materials, $3 per skillet for direct labor, and $4 per skillet for manufacturing overhead. Steel Handles has 6510-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 $1,200 per month. Steel Handles is budgeted to produce 779 skillets in July.
Compute the total amount budgeted for product costs for July.
A. $14,544
B. $12,500
C. $16,880
D. $15,580
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