Benton Corporation produces two graces of noncohol wine from Wapest Buys from carorna owe POSES ISTON SCO ters per year wo volume product called CoolDay. It sells this in 600.000 5.terus Benton produces and sells rothy 300 000 liters per yewofalow volume cost product called it Mist. Lite Mistis sold in 1liter bottle. Based on recent data, the CoolDay product has not been a profitable Lite Mist Management is considering dropping the inexpensive CoolDayline so it can c are attention on the Lite Mist product The Lite Mist product already demands considerably more attention than the CoolDayne Jack e president and founder of Bentoni tical about this idea He point out that for many decades the reduced only the CoolDayline and that it was w e iter b it wasn't well the company started producing the more complicated Line Mist wire that the prottability of CoolDay declined. Prior to the introduction of resist the company hudbust equipment simple growing and production procedures and virtually no need for quality control. Because Liteist is bottled in the 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 times as many bottles of LiteMost to sell the same quantity in CoolDay. CoolDay requires i month of aging CroMist requires i year. Coola reguires cleaning and inspection of entry 10.000 e u res such maintenance every 600 Jack has asked the accounting department to prepare an analysis of the cost per liter using the traditional costing approach and using activity-based costing. The following information was collected Direct materials per liter Direct labor cost per liter Direct labor hours per liter Total direct labor hours CoolDay Lite Mist $040 $120 $0.50 $0.90 005 0.09 150.000 27,000 Estimated Overhead Activity Cost Pools Cost Drivers Grape processing Curtos Tomath Number of bottles Number of battle Maintain and inspect equipment Number of inspections Expected Use of Cost Drivers per Product Expected Use of Cost Drivers CoolDay LiteMist 6.600 6.600.000 3.000.000 3600.000 900.000 600.000 300.000 00000000 100 000 400 396.000 270.000 1000 240 DO $1241610