Manufacturing Worksheet - Chunky Milk Assumptions: Raw milk costs $2/gallon one batch = 100 gallons Chunking one batch of milk requires 5 hours of direct labor Milk chunkers are paid $15/hour FOH is applied at a rate of 120% of direct labor dollars Direct labor is added at the beginning of the conversion process FOH is appled at the end of the conversion process We sell our chunky milk for $5/gallon Cost per raw material batch Price Group Raw Materials Cost per WIP Batch Dolar Amount Price Group Raw Materials Cost per finished batch Dolar Amount Price Group Raw Materials Dolar Amount