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Bluebean Inc. produces two lines of coffee cups: espresso coffee cups and travel coffee mugs. The unit cost information is shown here. The company uses

Bluebean Inc. produces two lines of coffee cups: espresso coffee cups and travel coffee mugs. The unit cost information is shown here. The company uses a traditional volume-based costing system and believes that the number of labor hours is the appropriate cost driver

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Activity Cost pool Espresso coffee cups Travel coffee mugs Selling price Direct materials Direct labor $20 $6 $2 $25 $8 $5 10,000 units 10,000 hours 4,000 units 6,000 hours Units produced Direct labor hours Estimated total overhead costs equal $80,000 Item Espresso coffee cups Travel coffee mugs Predetermined overhead rate select select Total manufacturing overhead allocated Manufacturing cost per unit Gross profit per unit select select select Vselect select select

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