Current Attempt in Progress Benton 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 5-liter jugs. Benton also produces and sells roughly 300,000 liters per year of a low-volume, high-cost product called LiteMist. Lite Mist is sold in 1-liter bottles. Based on recent data, the CoolDay product has not been as profitable as Lite Mist. Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the LiteMist product. The titeMist product already demands considerably more attention than the CoolDayline. Jack Eler, president and founder of Benton, 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 LiteMist wine that the profitability of CoolDay declined. Prior to the introduction of LiteMist, 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 LiteMist to sell the same quantity as CoolDay, CoolDay requires i month of aging: Lite Mistrequires 1 year. CoolDay requires cleaning and inspection et 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 $0.40 $1.20 Direct materials per liter Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.05 0.52 Total direct labor hours 150,000 36,000 Estimated Use of Cost Drivers per Product Estimated Use - / 50 Question 1 of 3 = Estimated Use of Cost Drivers per Product Estimated Overhead Estimated Use of Cost Drivers CoolDay Lite Mist Cost Drivers Activity Cost Pools $146,593 6,600 6,000 600 Grape processing Cart of grapes 541.200 Total months 3,000,000 6,600,000 297,000 900.000 600,000 Aging Bottling and corking Labeling and boxing Maintain and inspect equipment 3,600,000 300.000 300,000 206,100 900.000 600,000 Number of bottles Number of bottles Number of Inspections 244,000 800 350 450 $1.434,893 Answer each of the following questions. la) Under traditional product costing using direct labor hours.compute the total manufacturing cost per liter of both products. (Round answers to 3 decimal places, e3. 12250) CoolDay Lite Mist Manufacturing cost per liter Sort Attempts: 0 of 1 used Submit Awwe