Suppose Cook Pro manufactures cast iron skillets. One model is a 10-inch skillet that sells for $28. Cook Pro projects sales of 750 10-inch skillets per month. The production costs are $10 per skillet for direct materials, $4 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Cook Pro has 25 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 25% of the next month's sales. Selling and administrative expenses for this product line are $1,800 per month. Cook Pro is budgeted to produce 913 skillets in July
Compute the total amount budgeted for product costs for July.
A. $15,521
B. $13,462
C. $12,750
D. $15,946