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11-25A (similar to) Question Help Wilke Containers currently uses a recycled plastic to make bottles for the food industry (Click the icon to view the

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11-25A (similar to) Question Help Wilke Containers currently uses a recycled plastic to make bottles for the food industry (Click the icon to view the current bottle production information The variable manufacturing overhead rate is based on total estimated vaiable manufacturing overhead of $500,000 and estimated total DLH of 10,000. Wilke allocates its variable manufacturing overhead based on direct labor hours (DLH) (Click the icon to view the proposed changes to bottle design and production process.) Read the requirements Requirement 1. Calculate the standard cost per batch of 10,000 bottles using the current data (before the company makes any changes) Include direct materia direct labor, and variable manufacturing overhead (MOH) in the standard cost per unit Manufacturing cost Direct materials Direct labor Var able MOH Total standard cost Standard cost per batch More into Proposed changes to bottle design and production process: The container division manager is considering having both the bottle redesigned and the bottle production process reengineered so that the plastic usage would drop by 30% overal due both to generating less scrap in the manufacturing process and using less plastic in each bottle. In addition to decreasing the amount of plastic used in producing the bottles, the additional following benefits would be realized More Into Current bottle production information: The cost and time standards per batch of 10.000 bottles are as follows Direct labor hours would be reduced by 20% because less scrap would be handled in the production process a. b. Total estimated variable manufacturing overhead would be Plastic 360 klograms at $11.00 per kg Direct labor 6 0 hours at $20.00 per hour reduced by 10% because less scrap would need to be hauled away, less electricity would be used in the production process and less inventory would need to be stocked

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