1.Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 70-gallon batch.

2,700 ounces of grape concentrate at $0.04 per ounce

77 pounds of granulated sugar at $0.43 per pound

133 lemons at $0.79 each

350 yeast tablets at $0.24 each

350 nutrient tablets at $0.14 each

2,500 ounces of water at $0.001 per ounce

Hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used.

Standard Cost Per Gallon?

2.

Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.30 pounds. Materials cost $2 per pound, but Stefani always takes the 4.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. Direct labor. Each unit requires 1.30 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefanis employees is $12.50. Payroll taxes and fringe benefits are an additional $2.40 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.20 per direct labor hour.

Total standard cost per unit?

3.Chubbs Inc.s manufacturing overhead budget for the first quarter of 2017 contained the following data.

Variable Costs				Fixed Costs
Indirect materials		$11,200		Supervisory salaries		$35,600
Indirect labor		10,600		Depreciation		7,000
Utilities		7,000		Property taxes and insurance		7,100
Maintenance		5,700		Maintenance		5,500

Actual variable costs were indirect materials $14,500, indirect labor $9,600, utilities $9,400, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,200. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter