CALCULATOR PRINTER VERSION 4 BAC TEXTI Problem 17-04A a-d (Video) (Part Level Submission) Bramble Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low- cost, high-volume product called CoolDay. It sells this in 600,000 S-liter jugs. Bramble also produces and sells roughly 300,000 liters per year of a low volume, high-cost product called Utemist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been a profitable as Utemist. Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the Lite Mist product. The Lite Mist product already demands considerably more attention than the CoolDay line, Jack Eller, president and founder of Bramble, is skeptical about this idea. He points out that for many decades the company produced only the CoolDay line and that it was always quite profitable. It wasn't until the company started producing the more complicated Lite Mist wine that the profitability of CoolDay declined. Prior to the introduction of Lite Mist, the company had basic equipment, simple growing and production procedures, and virtually no need for quality control. Because LiteMist is bottled in 1-liter 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 5 times as many bottles of Lite Mist to sell the same quantity as CoolDay, Coolpay requires 1 month of aging: Lite Mist requires 1 year. CoolDay requires cleaning and inspection of equipment every 10,000 liters; Lite Mist requires such maintenance every 600 liters. 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. CoolDay Lite Mist Direct materials per liter $0.40 $1.20 Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.07 0.12 Total direct labor hours 210,000 36,000 Estimated Use of Cost Drivers per Product Activity Cost Pools Grape processing Aging Bottling and corking Labeling and boxing Cost Drivers Cart of grapes Total months Number of bottles Number of bottles Estimated Overhead $147.167 759,000 309,600 208,800 Estimated Use of Cost Drivers 6,600 6,600,000 900,000 900,000 CoolDay 6.000 3,000,000 600,000 600,000 Lite Mist 600 3,600,000 300,000 300,000 e to search o 1101 AM W22/2020 PRINTER VERDON NE CALCULATOR Estimated Use of cost Drivers per Product Activity Cost Pools Grape processing Aging Bottling and corking Labeling and boxing Maintain and inspect equipment Cost Drivers Cart of grapes Total months Number of bottles Number of bottles Number of inspections Estimated Overhead $147,167 759,000 309,600 208,800 242,400 $1,666,957 Estimated Use of Cost Drivers 6,600 6,600,000 900,000 900,000 800 CoolDay 6,000 3,000,000 600,000 600,000 350 Lite Mist 600 3,600,000 300,000 300,000 450 Answer each of the following questions. (a) Your answer is correct. Under traditional product costing using direct labor hours, compute the total manufacturing cost per liter of both products. (Round answers to 3 decimal places, 12.250.) CoolDay Lite Mist Manufacturing cost per liter 1.374 2.913 SHOW SOLUTION SHOW ANSWER LTEXTO TEKI VIDEOSTHILAR PROBLEM Attempts: 1 of 2 used ere to search O 4 do 1:01 AM 6/21/2020 (b) Under ABC, prepare a schedule showing the computation of the activity based overhead rates (per cost driver). (Round overhead rates to 3 decimal places, e.. 12.250.) Activity Cost Pools Estimated Estimated Use Activity-Based Overhead of Cost Drivers Overhead Rates Grape processing $ per cart Aging per month $ Bottling and corking $ per bottle Labeling and boxing $ per bottle Maintain and Inspect equipment $ per inspection Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above. 1:01 AM O e to search +