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Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered.

Projected sales in units

1,170

cases

Selling price per case

$

240

Inventory at the beginning of the quarter

150

cases

Target inventory at the end of the quarter

100

cases

Direct labor hours needed to produce one case

2

hours

Direct labor wages

$

10

per hour

Direct materials cost per case

$

8

Variable manufacturing overhead cost per case

$

6

Fixed overhead costs for the upcoming quarter

$

220,000

What is the total variable cost per case?

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