Artisan Coffee purchases green coffee beans from various suppliers and then roasts the coffee beans in its roasting facility.

$($Click the icon to view the manufacturing information.$)$

Read the requirements.

Requirement $1.$ What is the standard cost of producing one $15-$pound case of roasted coffee beans?

First, select the formula to calculate the standard cost of input. Then calculate the standard cost of ear

case of roasted coffee beans. $($Round your answers to the nearest cent.$)$

More info

The roasted beans are sold in $15-$pound cases to grocery stores and

restaurants for $$90$ per case. Each case of roasted coffee beans

requires $20$ pounds of unroasted green coffee beans. The company

can purchase the green coffee beans, including freight$-$in and

purchase discounts, for $$3\mathrm{.}50$ per pound. Each case of roasted coffee

beans requires $0\mathrm{.}25$ hours of direct labor in the production process.

Direct laborers are paid $$24$ per hour, which includes payroll taxes and

employee benefits. The company uses machine hours to allocate its

manufacturing overhead. Each case of roasted coffee beans requires

$0\mathrm{.}20$ machine hours to produce. The company expects to produce

$700,000$ cases of roasted coffee beans in the upcoming year. At this

production volume, the company expects total variable manufacturing

overhead to be $$4,200,000$ for the year. The company also expects to

incur $$35,000$ of fixed manufacturing overhead per month, or

$$420,000$ for the year.

Requirement $2.$ What is the standard gross profit per $15-$pound case of roasted coffee beans? $($Roun

The gross profit per $15-$lb case of roasted coffee is

Requirement $3.$ How often should the company reassess standard quantities and standard prices for

Since the price of coffee beans

Jften, the company

reassess standard prices often. In addition, the company

need to reassess

price standards if it finds cheaper suppliers for the ingredients.

They

need to reassess quantity standards for the direct materials

The company should reassess quantity standard for

overhead if

or reassess labor standards if the

changes.