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 allocate its 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 for the year. The company also
expects to incur of fixed manufacturing overhead per month, or for the year.
10 $95
10
$5.00 0.50
$15
0.20
600,000
$3,000,000
$50,000 $600,000
4/28/24, 9:02 PM More Info
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