Shinebright, Inc., a company that produces sunscreen has asked John to calculate their total product costs. Shinebright currently uses traditional costing and has reported the following costs: Janitorial Wages, $32,300; Factory Workers' Wages, $60,000; Machine Operators' Salaries, $34,616; Chemical Compounds, $51,000; Plastic Containers, $11,000; and their Manufacturing Overhead (MOH) will be 84% of their Direct Labor (DL) costs. What are their total product costs?

Question

Quizplus · Accepted Answer

This question requires you to calculate total product costs under traditional costing which entails ensuring that MOH uses the proper input. $236,093.44 (Choice B) correctly added together the DM of $62,000 ($51,000 + $11,000) plus the DL of $94,616.00 (would not include janitorial wages) plus the MOH of $79,477.44 ($94,616.00 × 0.84).