Question
Hercules Hair Restorer Inc. (HHRI) makes many varieties of hair restoration products which are sold under well-known marketing labels. A single batch contains 10,000 8
Hercules Hair Restorer Inc. (HHRI) makes many varieties of hair restoration products which are sold under well-known marketing labels. A single batch contains 10,000 8 oz. bottles and takes two days to make. Typically 15 batches are completed per month, for different brands. Basic cost data for the month of January appears below.
Hair by Zeus | Bottle | Batch | Cost per | January' s other expenses | ||
Oil, fl. oz. | 2 | $3 | Supervision | $8,000 | ||
Lotion, fl. oz. | 4 | $1 | Indirect materials | $2,200 | ||
Zeus potion, fl. oz. | 1/4 | $24 | Equipment deprec & repairs | $14,520 | ||
Alcemena scent | 1/16 | $48 | Plant manager's salary | $6,500 | ||
Bottle, cap, label | 1 | $0.4 | Utilities | $1,800 | ||
Direct labor, hour | 50 | $14 | $33,020 | |||
Machine hours | 8 |
The new CEO has decided that 25% of the production target of 200 batches per year will be a new product, whose information appears below.
Hair by Jove (new product) | |||
Qty per Bottle | Qty per Batch | Unit Cost | |
Oil, fl. oz. | 1 | $3.00 | |
Lotion, fl. oz. | 3 | $0.90 | |
Jove potion, fl. oz. | 1/8 | $24.00 | |
Hera scent | 1/8 | $60 | |
Bottle, cap, label | 1 | $0.40 | |
Direct labor, hour | 60 | $14.00 | |
Machine hours | 6 |
If HHRI makes 204 batches in the planned sales mix, which is true (to nearest $)?
Group of answer choices
Product Jove's total variable costs are $9,092,000
Product Jove's total variable costs are $9,273,840
Product Jove's total full costs are $9,386,191
Product Jove's total full costs are $9,388,163
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