Overhead rate = Total overheads/Total labor hours | 6.562691667 | per hour | |||
Calculation of manufacturing cost: | |||||
CoolDay | LiteMist | ||||
Direct materials per liter | 0.4 | 1.2 | |||
Direct labor cost per liter | 0.5 | 0.9 | |||
Overhead Cost = Cost per hour*Labor hours per unit | 0.459 | 0.656 | |||
Total Manufacturing Cost per litre | 1.359 | 2.756 | |||
(b)Schedule showing computation of rates: | |||||
Overhead | Cost | Driver | Rate/Activity | ||
Grape processing | 146,546 | 6,600 | 22.204 | ||
Aging | 673,200 | 6,600,000 | 0.102 | ||
Bottling and corking | 289,800 | 900,000 | 0.322 | ||
Labeling and boxing | 222,300 | 900,000 | 0.247 | ||
Maintain and inspect equipment | 243,200 | 800 | 304 | ||
(c)Allocation of cost | |||||
Overhead | Rate/Activity | Activity- CoolDay | Cost Assigned | Activity-LiteMist | Cost Assigned |
Grape processing | 22.204 | 6,000 | 133,224 | 600 | 13,322 |
Aging | 0.102 | 3,000,000 | 306,000 | 3,600,000 | 367,200 |
Bottling and corking | 0.322 | 600,000 | 193,200 | 300,000 | 96,600 |
Labeling and boxing | 0.247 | 600,000 | 148,200 | 300,000 | 74,100 |
Maintain and inspect equipment | 304 | 350 | 106,400 | 450 | 136,800 |
Total | 887,024 | 688,022 | |||
Number of litres | 3,000,000 | 300,000 | |||
Cost per litre | 0.29567467 | 2.29341 | |||
(d)Total Manufacturing cost: | |||||
CoolDay | LiteMist | ||||
Direct materials per liter | 0.4 | 1.2 | |||
Direct labor cost per liter | 0.5 | 0.9 | |||
Overhead Cost | 0.296 | 2.293 | |||
Total Manufacturing Cost per litre | 1.196 | 4.393 |
Question 5 Crane Corporation produces two grades of non-alcoholic wine from grapes that it buys from...
Question 5 Crane Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Crane also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist....
Bonita Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Bonita also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist. Management is...
Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite Mist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist. Management...
Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite Mist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as LiteMist. Management is...
Waterway Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low- cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs, Waterway also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite Mist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist...
Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. LiteMist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as LiteMist. Management is considering dropping...
Problem 4-4A a-d (Video) (Part Level Submission) Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been...
Problem 4-4A a-d (Video) (Part Level Submission) Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been...
Problem 4-4A a-d (Video) (Part Level Submission) Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been...
Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite Mist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist. Management...