The Police Company just began making a new product in May. The company produced 4 units of this new product in May. The total number of labor hours used to make these 4 units was 12,000, or an average of 3,000 hours per unit. In the class example, the baseline for computing the average time and doubling points was based on just 1 unit. In this problem, the baseline is the 4 units that were produced in May. Direct materials used in May amounted to 500 pounds per unit at $50 per pound. Direct labor costs $25 per hour, and variable overhead is charged to production at a rate of $10 per direct labor hour. Fixed overhead is $40,000 per month.

In June, the company produced 12 units, and in July the company produced 16 units. The accountant for the company predicts that there will be a 90% learning curve over the 3-month period (May, June, and July). Compute the total predicted production cost (DM + DL + VOH + FOH) for July for the Police Company.