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Treetop coffee purchases green coffee beans from various suppliers and then roast coffee beans in its roasting facility. The roasted beans are sold in 2
Treetop coffee purchases green coffee beans from various suppliers and then roast coffee beans in its roasting facility. The roasted beans are sold in pound cases to grocery stores and restaurants for $ per case each case of roasted coffee beans requires pounds of unroasted green coffee beans. The company can purchase the green coffee beans, including freight in and purchase discounts, for $ per pound. Each case of roasted coffee beans requires hours of direct labor in the production process. Direct laborers are paid $ per hour, which includes payroll taxes and employee benefits. The company uses machine hours to allocated manufacturing overhead. Each case of roasted coffee beans requires machine hours to produce. The company expects to produce cases of roasted coffee beans in the upcoming year. At this production volume the company expects total variable manufacturing overhead to be $ million for the year. The company also expects to incur $ fixed manufacturing overhead per month, or $ for the year. What is the standard cost of producing pound case of roasted coffee beans?
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