Coffee Bean incorporated (CBI) processes and distributes a variety of coffee cel buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1 pound bags. The major costis direct material however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor Some of the coffees are very popular and sell in large volumes a few of the newer brands have very low volumes Cell prices its coffee at full product cos, including allocated overhead, plus a markup of 30% its prices for certain coffees are significantly higher than the market Collowers its prices. The company competes primarily on the quality of its products but customers are price conscious well Data for the current budget include factory overhead of $3,000,000 which has been allocated on the basis of each products direct aber cont. The budgeted custoboc cout for the current year total$600.000. The firm buigeted $6.000.000 for purchase and use of direct materials (mostly coffee beans) The budgeted direct costs for 1 pound bagtot swo of the company's many products are as follows LOM Malaysian Direct materials 14.30 Direct labor 0.0 03 Cer's controller, Mona Celieves that its content product costing system could be providing misleading cost information She has developed this analysis of the current year's budgeted factory overhead costs Budete river Activity Cost be Con Hudted.com Purchasing Purchase orders 1.158 $ 579,000 Materials handling Setup 720.000 Quality control Batch 720 144.000 Roasting Masting hours 96,100 21.de Blandine Blending hours $3,600 336,000 Packaging Packaging hours 36.000 20.000 Total factory overhead cost $3,000,000 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees na La M Budgeted sales 100,000 pounds 2.000 pounds Batch sie 10,000 pounds 500 pounds Setups 3 per batch per batch Purchase order site 25.0 pounds 500 pounds Baiting time 1 hour per 100 pounds 1 hour per 100 pounds Blending time ..5 hour per 100 pounds 0.5 hour per 100 pounds Packaging tim 0.1 hour per 100 pounds 2.1 hour per 100 pounds Required: 1,000 Req 1A Reg 1B Reg 2 Using Coffee Bean Incorporated's current product costing system, determine the company's predeter using direct labor cost as the single cost driver. Predetermined factory overhead rate per direct labor Reg 1 Req 1B > Reg 1A Reg 1B Reg 2 Using Coffee Bean Incorporated's current product costing system, determine pound of Mona Loa coffee and one pound of Malaysian coffee. (Round your a Mona Loa Malaysian Product costs Budgeted selling price per pound
