Bubbly - Cola spends $2 on direct materials, direct labor, and variable manufacturing overhead for every...
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Bubbly - Cola spends $2 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it produces. Fixed manufacturing overhead costs $3 million per year. The plant, which is currently operating at only 70% of capacity, produced 15 million units this year. Management plans to operate closer to full capacity next year, producing 20 million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead. Read the requirements. Requirement 1. What is the current total product cost (for the 15 million units), including fixed and variable costs? Determine the formula, then calculate the current total product cost (for the 15 million units), including fixed and variable costs. million + + million = Total product costs million = Bubbly - Cola spends $2 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it produces. Fixed manufacturing overhead costs $3 million per year. The plant, which is currently operating at only 70% of capacity, produced 15 million units this year. Management plans to operate closer to full capacity next year, producing 20 million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead. Read the requirements. Requirement 1. What is the current total product cost (for the 15 million units), including fixed and variable costs? Determine the formula, then calculate the current total product cost (for the 15 million units), including fixed and variable costs. million + + million = Total product costs million =
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