Question: PB4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates LO 4-1, LO 4-3, LO 4-4,LO 4-6 Berry Good Company makes two types of energy

PB4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates LO 4-1, LO4-3, LO 4-4,LO 4-6 Berry Good Company makes two types of energydrinks, cherry and strawberry. Basic production information follows: Cherry Strawberry Direct materialscost per unit $0.70 $0.80 Direct labor cost per unit 0.25 0.25

PB4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates LO 4-1, LO 4-3, LO 4-4,LO 4-6 Berry Good Company makes two types of energy drinks, cherry and strawberry. Basic production information follows: Cherry Strawberry Direct materials cost per unit $0.70 $0.80 Direct labor cost per unit 0.25 0.25 Sales price per unit 2.50 2.50 Expected production per month 140,000 units 190,000 units Berry Good has monthly overhead of $159,670, which is divided into the following cost pools: Setup costs $75,000 Quality control 25,000 Maintenance 40,500 Engineering 19.170 Total $159.670 P

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