Question
Juicy Lemonade Company The Juicy Lemonade Company manufactures premium flavored organic lemonade. Management is ready to close the books for the end of the first
Juicy Lemonade Company
The Juicy Lemonade Company manufactures premium flavored organic lemonade. Management is ready to close the books for the end of the first quarter in 2019 and your supervisor has presented you with the following information.
- Total sales in gallons of flavored lemonade for January 2019 through March 2019 are as follows:
January 10,000
February 12,000
March 14,000
Each gallon of lemonade is packaged in eight 16 ounce bottles and sold in a case that sells for $15.00 per case. The company produced 37,500 units during the first quarter of 2019.
- The companys Variable Costs include the following
Direct Materials of $3.25 per gallon
Direct Labor of $____ per gallon (Each gallon of lemonade requires 15 minutes of direct labor time and the wage rate is $8 per hour)
Variable MOH $_____per gallon (The variable overhead rate is $2.00 per machine hour and processing one gallon of lemonade takes 45 minutes of machine time)
Variable Selling and Administrative costs of $1.25 per gallon
- The companys Fixed Costs for the quarter include the following:
Manufacturing Overhead $37,500
Selling and Administrative $26,900
The companys fixed manufacturing overhead per gallon is $______. (The Fixed Manufacturing Overhead rate is based on Fixed Costs for the quarter and the units produced for the quarter.)
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