Opaskwayak Inc. bottles pure spring water from lakes in northern Manitoba. The lakes are on First Nations propeny, and the band is the majority shareholder in the company. The only cost for the water is the cost of transportation and purificatiom The company is very careful not to overtax the water systems when it takes water. It also ensures sustainability for the land. Opaskwayak currently produces three different products from the spring water: still water, carbonated water, and a cranberry-flavoured carbonated version. The process for creating the various products is as follows: All products stan with the piping of the water to the bottling plant. At the plant, the water undergoes a thorough distillation process. 1% of the volume is lost in the distillation process. For still water, the water is bottled at this point For carbonated water, the water goes from this split-off point to the Carbonation department. After carbonation, a percentage of the product is bottled, and the remainder is moved to the Fruit depanment_ In the Fruit department, the cranberries are sorted, juiced, and boiled into a syrup. The syrup is added to the carbonated water, and the final product is bottled. The following information was reponed for the most recent period Department Direct materials Direct labour Planned manufacturing overhead Actual manufacturing overhead Planned machine hours Actual machine hours Planned direct labour hours Actual direct labour hours Volume in litres Transportation Purification Carbonation $87,500 26,200 26,208 5,250 5,650 S75,750 S560,ooo S485,ooo 8,800 8,850 5,050 5,000 S145,ooo S675,850 S669,880 20,000 19,500 10,ooo 10,050 41 Fruit $320, 760 $180,000 $356,000 $376, 128 20,000 20,100 12,000 11,990 Bottling $130,680 $218,400 2,496 2,496 10,000 12,000 In the current period the following production occurred. 60% of the purified volume was bottled as still water. 35% of the purified volume was bottled as carbonated water, and the remainder was bottled as cranberry-flavoured carbonated water.