Bounty Distributors Limited manufactures orange juices that go through two production departments: Processing and Packaging. The processing department is machine intensive, while the packaging department is highly labour intensive. The company applies a mark-up of 20% on total cost. The entity projects budgeted overheads and budgeted activity levels for both departments based on normal level of activity: Departments Processing Packaging Budgeted overheads $5,000,000 $5,000,000 Budgeted activity levels 2,500,000 1.000.000 Selling and administration cost is 25% of the total production costs. For the period the entity produced 1,000,000 units. The company used 250,000 more direct labour hours than budgeted but used 200,000 less machine-hours actually than planned. The actual direct material cost for the period is $10,750,000, while the actual labour rate is $25. Required: Calculate the total production cost to manufacture the orange juices [7 marks] Calculate the selling price per orange juice 14 mark 1