1/10 !! = Question 2 -10 Question crurinn we Question 4 w w Sheridan Corporation produces two grades of non-alcoholic wine from grapes that it buys from Californiagrowers. 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 jug. Sheridan also produces and sells roughly 300.000 liters per year of a low-volume, high-cost product called Lite Mist Lite Mistis sold in 1 liter bottles Based on recent data the CoolDay product has not been as pro tableas Lite Mist Management is considering dropping the inexpensive CoolDayline so it can focus more attention on the Lite Mist product. The Lite Mist product already demands considerably more attention than the CoolDayline Jack Eller, president and founder of Sheridan, is skeptical about this idea He points out that for many decades the company produced only the CoolDay line and that it was always quite profitable. It wasn't until the company started producing the more complicated Lite Mist wine that the profitability of CoolDay declined. Prior to the introduction of Lite Mist, the company had basic equipment, simple growing and production procedures, and virtually no need for quality control. Because Lite Mistis bottled in 1-liter bottles, it requires considerably more time and effort, both to bottle and to label and box than does CoolDay. The company must bottle and handle 5 times as many bottles of Lite Mist to sell the same quantity as CoolDay, CoolDay requires 1 month of agro Lite Mint requires 1 year. CoolDay requires cleaning and inspection of equipment every 10.000 liters Lite Mist requires such maintenance every 600 ters Jack has asked the accounting department to prepare an analysis of the cost per liter using the traditional costing proach and using activity-based costing. The following information was collected Questions Acting 10 Scared - 10 Question . Question -10 Question AM Sed CoolDay Lite Mist General Question 9 cou M 50.40 $1.20 SI Direct materials per liter Direct labor cost per liter $0.50 $0.90 Viewing Question 10 AM Direct labor hours per liter 0.07 0.12 aanaan Question 10 of 10 - / 10 Question 2 -710 Direct labor hours per liter 0.07 0:12 Question -S Total direct labor hours 210.000 36.000 Question 4 -25 Estimated Use of Cost Drivers per Product Questions V 10 Estimated Overhead Estimated Use of Cost Drivers Activity Cost Pools Cost Drivers CoolDay Lit -10 Question Cart of grapes $ 150,480 6,600 6.000 800 752,400 Total months 6,600,000 3,000,000 3.600.000 10 Question 297,000 900,000 600.000 300,000 Number of bottles Grape processing Aine Bottling and corking Labeling and boxing Maintain and inspect equipment 15 900,000 600,000 300.000 Question 212.400 Number of bottles Number of inspections 244,000 300 350 450 General Question 9 BA SA $1656,280 Viewing Question 10 Answer each of the following questions. APS Question 10 of 10 -/10 Question 2 10 (a Question 5 Under traditional product costing using direct labor hours.computer the total manufacturing cost per liter of oth products (Round answers to 3 decimal places, es 12.250 Question 4 CoolDay Lite Mist Questions 10 Manufacturing cost per liter $ Question 10 e Textbook and Media Question? 110 Attempts of ruled Salmow Salater Question Genera (b) The parts of the question must be completed in order this part will be available when you comete the portive Question SI Viewing Question 10 (c) Ps