The private brewery Knig Otto Bru manufactures a variety of Craft Ales that differ in their fermentation

The private brewery König Otto Bräu manufactures a variety of Craft Ales that differ in their fermentation times, which are responsible for the beers’ characteristic flavors. The Bitter Ale needs two more days of fermentation than the Scottish Ale and therefore requires more energy and storage capacity. The master brewer estimates that one bottle of Bitter Ale causes approximately 15 per cent higher costs than the Scottish Ale. The Indian Pale Ale and Imperial IPA require even longer fermentation times and therefore cause even higher costs per bottle. Their costs are 22.5 per cent (IPA) and 30 per cent (Imperial IPA) higher than those of the Scottish Ale.

König Otto Bräu manufactured the following quantities of the four beer variants in the past accounting period:

Scottish Ale: 6,000 bottles Bitter Ale: 7,500 bottles Indian Pale Ale: 17,200 bottles Imperial IPA: 4,600 bottles Total cost in the period was €202,490.

Use the equivalence coefficient costing method for assigning costs.