Tree Top Coffee purchases green coffee beans from various suppliers and then roasts the coffee beans in its roasting facility. More Info The roasted beans are sold in 20-pound cases to grocery stores and restaurants for $90 per case. Each case of roasted coffee beans requires 15 pounds of unroasted green coffee beans. The company can purchase the green coffee beans, including freight-in and purchase discounts, for $4.00 per pound. Each case of roasted coffee beans requires 0.10 hours of direct labor in the production process. Direct laborers are paid $19 per hour, which includes payroll taxes and employee benefits. The company uses machine hours to allocate its manufacturing overhead. Each case of roasted coffee beans requires 0.30 machine hours to produce. The company expects to produce 800,000 cases of roasted coffee beans in the upcoming year. At this production volume, the company expects total variable manufacturing overhead to be $4,800,000 for the year. The company also expects to incur $40,000 of fixed manufacturing overhead per month, or $480,000 for the year. Requirement 1. What is the standard cost of producing one 20-pound case of roasted coffee beans? First, select the formula to calculate the standard cost of input. Then calculate the standard cost of each input. Finally, calculate the total standard cost of producing one 20-pound case of roasted coffee beans. (Round your answers to the nearest cent.) Standard quantity X Standard price Standard cost of input Direct materials pounds S S per pound Direct labor hours S per hour $ Variable manufacturing overhead machine hours $ X $ per hour = $ $ Fixed manufacturing overhead machine hours per hour $ Total Requirement 2. What is the standard gross profit per 10-pound case of roasted coffee beans? (Round your answers to the nearest cent.) The gross profit per 10-1b case of roasted coffee is $ Requirement 3. How often should the company reassess standard quantities and standard prices for inputs? Since the price of coffee beans can change often, the company should reassess standard prices often. In addition, the company would need to reassess price standards if it finds cheaper suppliers for the ingredients. They will not need to reassess quantity standards for the direct materials unless they change the recipe The company should reassess quantity standard for overhead if they decide to change the size of the case or reassess labor standards if the wage rate changes