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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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