Daisy Drink Company has the following budget at 500,000 cases of cola:

Direct materials..............................$180,000

Direct labor.....................................$160,000

Variable Factory overhead.............$150,000

Fixed factory overhead..................$130,000

$620,000

(1) Compute the cost per case of cola at 500,000 cases.

(2) Develop the budget for 550,000 cases.

(3) Compute the cost per case at 550,000 dozen.

(4) Explain why the difference in the cost per dozen occurs at the different levels of

volume.

Answer rating: 100% (QA)

Daisy Drink Company Budget Analysis 1 Cost per Case at 500000 Cases Total cost 620000 Total cases 500000 cases Cost per case Total cost Total cases Co... View the full answer