Problem P4-4A - all questions - Managerial Accounting Set A:4 P4-4A Mendocino Corporation produces two grades of wine from grapes that it buys from

Managerial Accounting Set A:4 Tyler has asked the accounting department to prepare an analysis of the cost per CoolDay LiteMist Direct materials per liter $0.40 $1.20 Direct labor cost per liter $0.25 $0.50 Direct labor hours per liter 0.05 0.09 Total direct labor hours 120,000 25,000 Activity Cost Pools Cost Drivers Estimated Over Grape processing Cart of Grapes $145,860 Aging Total months 396,000 Bottling and corking Number of bottles 270,000 Labeling and boxing Number of bottles 189,000 Maintain and inspect equipment Number of inspections 240,800 $1,241,660 Instructions P4-4A Mendocino Corporation produces two grades of wine from grapes that it b 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sel sells roughly 300,000 liters per year of a low-volume, high-cost product called Lite the CoolDay product has not been profitable as LiteMist. Management is consider more attention on the Litemist product. The LiteMist product already demands con Tyler Silva, president and founder of Mendocino, is skeptical about this idea. He p only the CoolDay line, and that it was always quite profitable. It wasn't until the co wine that the profitability of CoolDay declined. Prior to the introduction of LiteMist, production procedures, and virtually no need for quality control. Because LiteMist time and effort, both to bottle and to label and bpx than does CoolDay. The compa LiteMist to sell the same quantity as CoolDay. CoolDay requires 1 month of aging inspection of equipment every 10,000 liters; LiteMist requires such maintenance e