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Exercise 13-15 (Algo) Product costingvarious issues LO 13-5

Ironstone Incorporated produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours.

Required:

For 2022, the companys cost accountant estimated that total overhead costs incurred would be $489,500 and that a total of 55,000 direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run.

Note: Round your answer to 2 decimal places.

A production run of 450 coffee mugs used raw materials that cost $470 and used 50 direct labor hours at a cost of $10.50 per hour. Calculate the cost of each coffee mug produced.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

At the end of August 2022, 330 coffee mugs made in the production run in part b had been sold and the rest were in ending inventory. Calculate (1) the cost of the coffee mugs sold that would have been reported in the income statement and (2) the cost included in the August 31, 2022, finished goods inventory.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.