Artie, Inc. manufactures soy candles in the Southeast region of the United States. They have reported the following costs for their rose-scented line of candles: Glass Containers, $28,600; Cotton Wicks, $20,000; Candle Assembly Wages, $46,250; Shipping, $26,000; Package Assembly Wages, $6,000; and Candle Lids, $5,962. Their Manufacturing Overhead (MOH) will be 90% of their Direct Labor (DL) costs. You are reviewing the work of a fellow accountant and confirming calculations for their traditional costing numbers. What are the total product costs for the rose-scented line of candles?

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. $153,837.00 (Choice B) correctly added together the Direct Materials (DM) of ($28,600 + $20,000 + $5,962) $54,562.00 plus the DL of ($46,250 + $6,000) $52,250.00 plus the MOH of $47,025.00 ($52,250 × 0.90).