ent #4 (Chapter 5) i =httpS/253A252F%252Fnewconnect.mheducation.com Saved Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from around the world and roasts, ble and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; 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. CBI prices its cof at full product cost, including allocated overhead, plus a markup of 30%. If its prices for certain coffees are significantly higher than market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as well . Data for the current budget include factory overhead of $3,300,000, which has been allocated on the basis of each product's direct labor cost. The budgeted direct labor cost for the current year totals $603,000. The firm budgeted $6,300,000 for purchase and use of direct materials (mostly coffee beans). The budgeted direct costs for 1-pound bags of two of the company's many products are as follows: Direct materials Mona Loa Malaysian $ 4. 20 $ 3.20 Direct labor 0 . 30 0. 30 CBI's controller, Mona Clin, believes that its current product costing system could be providing misleading cost information. She has developed this analysis of the current year's budgeted factory overhead costs: Budgeted Activity Cost Driver Activity Budgeted Cost Purchasing Purchase orders 1, 188 $ 582, 000 Materials handling Setups 1, 830 723, 000 Quality control Batches 750 147, 000 Roasting Roasting hours 96 , 400 964, 000 339, 000 Blending Blending hours 33, 900 Packaging Packaging hours 26, 300 263, 000 $ 3, 018, 000 Total factory overhead cost . . . Mc Tutorial 2 - Ch....mp4 Mc Graw problem 2 part A.jpg Education Student Flyer 7....pdf Quiz_2.pdf.pdf SX.XIsx MacBook Prohe pound tivity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee coffee. Allocate all overhead costs to the 103,000 pounds of Mona Loa and the 2,030 pounds of Malaysiar Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Using Coffee Bean Inc.'s current product costing system, determine the full product costs and selling prices of one pou Mona Loa coffee and one pound of Malaysian coffee. (Round your answers to 2 decimal places. ) Mona Loa Malaysian Product costs $ 632,523.00 $ 10,436.23 Budgeted selling price per pound Mc Graw Hill Education Student Flyer 7....pdf problem 2 part A.jpg Tutorial 2 - Ch....m xIsx.xisx Quiz_2.pdf.pdf MacBook Pro C G Search or type URL K & * W # $ OO 9 4 5 J 2ysian. this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 103,000 pounds of Mona Loa and the 2,030 pounds of Malaysian. (Round intermediate calculations to 2 decimal places.) Mona Loa Coffee Direct unit costs: Malaysian Coffee Direct materials Direct labor $ 0.00 $ 0.00 Indirect unit costs: Purchasing Material handling Quality control Roasting Blending Packaging $ 0.00 Total unit cost $ 0.00