Quincy fiems is a producer of items made from farm products that are distnibuted to supermatkets. For many years, Quincy's profucts have had strong regional sales on the basis of brand recognition. Howevec other comparies have been marketang wimlar products in the ares, and price competibon has become incisasingly important, Deug Gilbert, the materials reauliements for Quincy's products. Doxig believes that the uve of standard costing will allow Quincy to imiprive tost cortral and make better openating decisions. sorted by hand before entering the production process. Ilecause of imperfections in the strawherries and spoilage, one quart of stranberties is discarded for every four quarts of acceptable bemes. Four minutes is the standard direct labor tame required for sorting strawberries in order to obtain one quart of strawbernes. The aconptatile stranberies are thei the following intormation from loe Adams, Quincy's cost accountant, relative to procesting the strawberry jam. A. Gevincy puichaves strambernes at a coit of 50.80 per quart. All other ingredieats cost a total of 50.46 per gallion. b. Divect labor is paid at the tate of 59.50 per heraf. 5. The total cost of direct material and direct labor required to paikage the jam is 50.37 per puast. Joe has a friend who cowns a strwatierfy farm that has been losing money in recent years. Hecause of goed crops, thern has been an oversupply of urawberties, and prices have drepped to $0.50 per quart. Joe has arranged for Quency to purchasen strawberies frem his friend's farm in hopes that the so. A0 per iquart will put his friend's farm in the black. Requiredt the mearatht cotnt