The roasted beans are sold in 25 -pound cases to grocery stores and restaurants for $85...
The roasted beans are sold in 25 -pound cases to grocery stores and restaurants for $85 per case. Each case of roasted coffee beans requires 25 pounds of unroasted green coffee beans. The company can purchase the green coffee beans, including freight-in and purchase discounts, for $1.50 per pound. Each case of roasted coffee beans requires 0.25 hours of direct labor in the production process. Direct laborers are paid $19 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 0.20 machine hours to produce. The company expects to produce 750,000 cases of roasted coffee beans in the upcoming year. At this production volume, the company expects total variable manufacturing overhead to be $4,500,000 for the year. The company also expects to incur $150,000 of fixed manufacturing overhead per month, or $1,800,000 for the year.
Requirement 1. What is the standard cost of producing one 25-pound case of roasted coffee beans?
First, select the formula to calculate the standard cost of input. Then calculate the standard cost of each input. Finally, calculate the total standard cost of producing one 25-pound case of roasted coffee beans. (Round your answers to the nearest cent.)
| Particulars | Standard Quantity | Standard Price | Standard cost |
| Direct materials | |||
|
Direct Labor |
|||
| Variable manufacturing overhead | |||
| Fixed manufacturing overhead | |||
| Standard cost |
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