Wolanin Containers currently uses a recycled plastic to make bottles for the food industry. (Click the icon to view the current bottle production information) The variable manufacturing overhead rate is based on total estimated variable manufacturing overhead of $400,000 and estimated total DLH of 10,000. Wolanin allocates its variable manufacturing overhead based on direct labor hours (DLH). (Click the icon to view the proposed changes to bottle design and production process.) Read the requirements Xdirect labor, and More Info More Info Proposed changes to bottle design and production process: The container division manager is considered 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 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 Current bottle production information: The cost and time standards per batch of 10,000 bottles are as follows Plastic 240 kilograms at $8.00 per kg Direct labor 4.0 hours at $20.00 per hour Print Done a. Direct labor hours would be reduced by 20% because less scrap would be handled in the production process b. Total estimated variable manufacturing overhead would be reduced by 15% 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