Wilke Containers currently uses a recycled plastic to make bottles for the food industry. View the current bottle production information. The variable manufacturing overhead rate is based on total estimated variable manufacturing overhead of $600,000 and estimated total direct labor hours (DLH) of 10,000. The company allocates its variable manufacturing overhead based on direct labor hours. Requirement 1. Calculate the standard cost per batch of 10,000 bottles using the current data (before the company makes any changes). Include direct mat Manufacturing cost Direct materials Direct labor Variable MOH Total standard cost Standard cost per batch Requirement 2. Calculate the standard cost per batch of 10,000 bottles if the company makes the changes to the bottle design and production process so th per unit. (Round interim calculations to two decimal places and your final a Manufacturing cost Direct materials Direct labor Variable MOH Total standard cost Standard cost per batch Requirement 3. Calculate the cost savings per batch by comparing the st The cost savings per batch is Assume that the total cost to implement the changes would be $211,400. First select the formula to compute the number of batches to recoup the co Current bottle production information: The cost and time standards per batch of 10,000 bottles are as follows: Plastic 340 kilograms at $7.00 per kg Direct labor 2.0 hours at $15.00 per hour Print Dor Requirements 1. Calculate the standard cost per batch of 10,000 bottles using the current data (before the company makes any changes). Include direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit. 2. Calculate the standard cost per batch of 10,000 bottles if the company makes the changes to the bottle design and production process so that less plastic is used. Include direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit. 3. Calculate the cost savings per batch by comparing the standard cost per batch under each scenario (current versus proposed change). Assume that the total cost to implement the changes would be $211,400. How many batches of bottles would need to be produced after the change to have the cost savings total equal the cost to make the changes? 4. What other benefits might arise from making this change to using less plastic in the manufacture of the bottles? Are there any risks? What would you recommend the company do? Print Done Number of batches to recoup cost of implementing Requirement 4. What other benefits might arise from making this change to using less plastic in the manufacture of the bottles? Are there any risks? The company will recognize cost savings once financial benefits, but also the company will The company faces the risk that batches have been produced. Not only will the company reap The container division manager is considering having both the bottle redesigned and the bottle production process reengineered so that the plastic usage would drop by 25% overall due both to generating less scrap in the manufacturing process and to using less plastic in each bottle. In addition to decreasing the amount of plastic used in producing the bottles, the additional following benefits would be realized: a. Direct labor hours would be reduced by 10% because less scrap would be handled in the production process. b. Total estimated variable manufacturing overhead would be reduced by 5% because less scrap would need to be hauled away, less electricity would be used in the production process, and less inventory would need to be stocked. Print Done