Grisham Products Inc What Is the Projected Applied Manufacturing Overhead Cost for November

Multiple Choice

Grisham Products Inc.manufactures engines for small scooters.At 30 September,the company had 2500 engines in inventory.The company's policy is to maintain an ending inventory equal to 8 per cent of next month's sales.Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $.30 per minute.Grisham applies overhead to engines at a rate of $.15 per direct labour minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{ll}\text { October } & 12000 \text { units } \\\text { November } & 20000 \text { units } \\\text { December } & 35000 \text { units }\end{array}$

What is the projected applied manufacturing overhead cost for November?

A) $153 900
B) $143 100
C) $ 42 930
D) $126 900