What are their total product costs? A) $143,137.50 B) $151,500.00 C) $209,737.50 D) $320,737.50
What are their total product costs? A) $143,137.50 B) $151,500.00 C) $209,737.50 D) $320,737.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
10. Monarch Inc. is a company that creates and distributes butterfly-themed home décor. You are attempting to calculate total product costs for Monarch by using traditional costing. They have the following costs: Direct Materials (DM) of Resin, $12,000; DM of Metal Backing, $9,000; Paint, $6,000; DM of Adhesive, $10,000; Cardboard for Packaging, $3,000; Assembly Line Wages, $55,750; Marketing, $36,000; and Sales Commissions, $60,000. Their Manufacturing Overhead (MOH) will be 85% of their Direct Labor (DL) cost. What are their total product costs?
A) $143,137.50
B) $151,500.00
C) $209,737.50
D) $320,737.50
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