Grisham Products Inc manufactures engines for small scooters. On September 30, the company had 1,050 engines in inventory. The company's policy is to maintain an ending inventory equal to 15% of next month's sales. Each engine manufactured requires 20 minutes of assembly and inspecting time at a cost of $1.50 per minute. Grisham applies overhead to engines at a rate of $2.50 per direct labor
minute. The company expects the following sales activity for the fourth quarter of the year: October 7,000 units November 14,750 units December 28,900 units What is the projected applied manufacturing overhead cost for November?
A) $408,125
B) $843,625
C) $631,375
D) $737,500
B
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What will be an ideal response?
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