Sefeld Corporation produces two grades of non-alcoholic wine from grapes that it buys from Californiagrowers. It products and els roughly 3.000.000 liters per year of a low-cost, high volume product called CoolDay, it see this in 600.000 5-liter jugs Sheffield who produces and sell roughly 300.000 liters per year of a low volume, high cost product called Lite Mist. Lite Mist is sold in 1 liter battles. Based on recent data, the CoolDay product has not been a profitable as Lite Mist, Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the Lite Mist product. The Lite Mist product ready demands considerably more attention than the Coolbayline Jack Eller president and founder of Shethed setkal about this idea He points out that for many decades the company produced only the CoolDay line and that it was was quite profitable. It wasn't until the company started producing the more complicated LitMist wine that the probability of CoolDay declined. Prior to the introduction of Lite Mist the company had basic equipment simple growing and production procedures and virtus no need for quality controlecane Utent is bottled in 1liter bottles.it requires considerably core time and effort, both to bottle and to label and box than does CoolDay. The company must bottle and hardie 5 times as many bottles of Lite Mist to sell the same quantity as CoolDay. CoolDay requires month of Liteit requires 1 year. Coolaveguires cleaning and impaction of equipment every 10,000 liters LiteMatrequires such maintenance every 600 1 liters Jack has asked the accountine department to prepare an analysis of the cost per liter uning the traditional costly approach and usios activity based costing. The following information was collected CoolDay Lite Mist Direct materials per lite $0.40 Directlabor cost per liter 50.50 $1,20 50,00 0:07 21.000 Director hours per 000 Total de labor hours 180.000 Estimated Use of Cost Estimated Use of Cost Drivers per Product Estimated Use Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers CoolDay Lite Mit Grape processing Cartof grapes 5146,685 0600 6000 800 495.000 6.600.000 3.000.000 3.600.000 Total months Number of bottles 900.000 000,000 300.000 Aine Bottling and colone Labeling and boxin Maintain and inspect coulement 309.000 201400 Number of batter 900,000 600.000 300.000 Number of Inspection 241/000 800 350 450 $1.394485 Amach or the following custom Under traditional product costinectaboros.com tota manufacturing cost perliter of both products wers to decimal locat2250) CD LitM Mwing comportar 5 Under ADC prepare a schedule showing the computation of the activity based overhead rate per costriel Round overhead potesto 3 decimal places 12.250) Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers Activity and Overhead Rates Grape processing 5 Der cart Ant per month Bottling and coring per bottle Labeling and boxing per bottle Maintain and Inspect equipment per inspection Prepare a schedule www.winch activity the cost of the new computation of over couper eundert, wo 12.50 and decimal ca 12.250 Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers include computation of overhead cost per liter. Round overhead rate cost per terto I decimal places, 12.250 and cost signed to decimal places 12.250) CoolDay Activity Cost Pool Estimated Use of Cost Drivers Activity-Based Overhead Rates Cost Assigned Grape processing 5 $ Ain 5 Botting and corking $ Labeling and boring Maintain and inspect equipment Overhead costs and Litro produced Overhead cost perlite decimal, 12.250) List Mist Cost Assigned Gtimated Use of Cost Drivers Activity Based Overhead Rates Cont Assigned 5 $ S $ ESTEN $ Compute the total manufacturing cost per liter for both products under ABC. (Round overhead cost per liter to decimal places, es 1.225 CoolDay Lite Mist Manufacturing cost per liter $ $ Save for later Attempts of 15 used Suunto