Ivanhoe, Inc., a company that produces sunscreen has asked Donald tocalculate their total product costs. Ivanhoe currently uses traditionalcosting and has reported the following costs: Janitorial Wages, $33,500;Factory Workers' Wages, $60,000; Machine Operators' Salaries,$36,000; Chemical Compounds, $51,500; Plastic Containers, $10,500;and their Manufacturing Overhead (MOH) will be 80% of their DirectLabor (DL) costs. What are their total product costs?A) $294,203.00B) $318,600.00C) $234,800.00D) $220,000.00

To calculate Ivanhoe Inc.'s total product costs, we need to sum up Direct Materials (DM), Direct…

Answered: Ivanhoe, Inc., a company that produces…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 980 hours each month to produce 1.960 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 16.50 3.50 Total Direct materials Direct labor Varlable manufacturing overhead (based on direct labor-hours) $ 32,340 $ 6,860 $ 1,40 1.00 $ 21.00 During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month: Per Set of Total Covers Direct materlals (6,000 yards) Direct labor Variable manufacturing overhead $ 34,020 $7,770 $3,990 $ 16.20 3.70 1.90 $ 21.00 At standard, each set of covers should require 25 yards of material. All of the…

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