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Honey Iced Tea makes Tea in 6 oz containers. A standard production runs around 500,000 containers. Using direct material: Honey is $8.20 per gallon, and
Honey Iced Tea makes Tea in 6 oz containers. A standard production runs around 500,000 containers. Using direct material: Honey is $8.20
per gallon, and 100,000 pounds of tea leaves cost $2.00 per pound. Packing the tea in bottles costs $0.03 a bottle (container). The standard DM cost per bottle is $0.85. What is the standard gallons of honey used to produce 500,000 bottles of tea?
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