Hobby Horse, Inc. plans to produce 10,000 wooden rocking horses in October. The parts for two horses can be cut out of three 4X8 sheets of 3/4" birch plywood. The cost of a sheet of plywood has been stable at $50 for several months and is not expected to change. There will be 2,000 sheets left over at the end of September, but management wants production to use all the plywood up in October so there will be no ending inventory of plywood sheets. What is the total direct material cost projection for the October operating budget?

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