BONUS Daisy Drink Company has the following budget at 500000

BONUS: Daisy Drink Company has the following budget at 500,000 cases of cola: Direct materials Direct labor Variable factory overhead Fixed factory overhead $180,000 160,000 150,000 130,000 $620,000 Compute the cost per case of cola at 500,000 cases.

Solution

Total cost would include fixed overhead and the total cost would be $ 620,000. Number of cases are 500,000. Therefore cost per case is $ 620,000 / 500,000 = $ 1.24

 BONUS: Daisy Drink Company has the following budget at 500,000 cases of cola: Direct materials Direct labor Variable factory overhead Fixed factory overhead $1

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