d)total manufacturing cost per gallon for both products under ABC

e) memo to the owner discussing implications of analysis for companys plans, provide a brief description of ABC and why tradtionao approach has distortions

V Fresh Memdo V Direct materials per gallon $1.35 $3.60 Direct labor cost per gallon $0.75 $1.50 Direct labor hours per gallon 0.05 0.10 Total direct labor hours 30.000 20,000 Expected Expected Use U\" of of Cost Drivers Estimated Coot __Eh'd_\"t_._ Lew-.0; M1 Ottorhea! m V Fred: W Grape processing Cart of grapes $ 146,000 8,000 6,000 2,000 Aging Total months 420,000 3,000,000 600,000 2,400,000 Bottling and Number of ' corking bottles 210,000 1,400,000 600,000 800,000 Labeling and Number of boxing bottles 140,000 1 ,400,000 600.000 800.000 Maintain and Number of inspect equipment inspections 234E000 1.040 240 800 1 150.000