Golden Valley produces a mint syrup used by gum and candy companies. Recently, the company has had excess capacity due to a new competitor entering its market. Golden Valley is currently bidding on a potential order from Quality Candy for 5,100 cases of syrup. The estimated cost of each case is $23.90, as follows: Direct material Direct labor Overhead Total $9.40 5.10 9.40K $23.90 The predetermined overhead rate is $1.84 per direct labor dollar. This was estimated by dividing estimated annual overhead ($1,101,600) by estimated annual direct labor ($612,000). The $1,101,600 of overhead is composed of $275,400 of variable costs and $826,200 of fixed costs. The largest fixed cost relates to depreciation of plant and equipment.

(The answer 16.85 did not work or 2.35)

GoldenValley produces a mint syrup used by gum and candy companies. Recently, the company has had excess capacity due to a new competitor entering its market. GoldenValley is eurrently bidding on a potentiaf order from Quality Candy for 5,100 cases of syrup. The estimated cost of each case is $23.90, as follows: The predetermined overhead rate is $1.84 per direct labor dollar. This was estimated by dividing estimated annual overhead ($1,101,600) by estimated annual direct labor ($612,000). The $1,101,600 of overhead is composed of $275,400 of variable costs and $826,200 of fixed costs. The largest fixed cost relates to depreciation of plant and equipment. With respect to overhead, what is the opportunity cost of producing a case of syrup? (Round answer to 2 decimal places, es. 15.25.) Opportunitycost