South Dakota Microbrewery Case

1.

A/B.

Buffalo Ale:

A.

Direct Materials: 62.80

Direct Labor: 108.00

Labor Hours: 18 Hours

18 x 15.57 = 280.26

Cases Created: 22 x 24 (Quantity of Bottles/Case) = 528

Total Cost Per Batch: $451.06
Cost Per Bottle = 451.06/528 = $0.85/Bottle

B.

Direct Materials: 62.80

Direct Labor: 108.00

Fermentation Days: 13.06 x 3 = 39.18

Direct Labor Hours: 1 x 18 = 18

Machine Hours: 0.07 x 110 = 7.7

Number of Orders: 8.36 x 2 = 16.71

Quality Control Inspections: 5 x 2.16 = 10.8

Bottles Produced: .10 x 528 = 52.8

Total Cost Per Batch: $315.99
Cost per Bottle: $0.60

Bismark Bock:

A.

Direct Materials: 88.95

Direct Labor: 72.00

Labor Hours: 12 Hours

12 x 15.57 = 186.84

Cases Created: 16 x 24 = 384

Total Cost Per Batch: 347.79
Cost Per Bottle = 347.79/384 = $0.91

B.

Direct Materials: 88.95

Direct Labor: 72.00

Fermentation Days: 13.06 x 14 = 182.84

Direct Labor Hours: 1 x 12 = 12

Machine Hours: 0.07 x 325 = 22.75

Number of Orders: 8.36 x 18 = 150.48

Quality Control Inspections: 2.16 x 22 = 47.52

Number of Bottles Per Batch: 384 x 0.10 = 38.4

Total Cost Per Batch: $614.94
Cost Per Bottle: 614.94/384 = 1.6

Four Heads Stout:

A.

Direct Materials: 89.55

Direct Labor: 78.00

Labor Hours: 13
13 x 15.57 = 202.41

Cases Created: 18 x 24 = 432

Total Cost Per Batch: 369.96
Cost Per Bottle = 369.96/432 = $0.86

B.

Direct Materials: 89.55

Direct Labor: 78.00

Fermentation Days: 13.06 x 4 = 52.24

Direct Labor Hours: 13 x 1 = 13

Machine Hours 0.07 x 135 = 9.45

Number of Orders: 8.36 x 9 = 75.24

Quality Control Inspections: 2.16 x 8 = 17.28

Bottles Per Batch: 0.10 x 432 = 43.2

Total Cost Per Batch: $377.96
Cost Per Bottle: 377.96/432 = $0.87

1B. Additional Working

Overhead costs/Estimated number of bottles produced

$38,000 = Fermentation Days Cost / 2,910 = $13.06

7500 Direct Labor Hours /7500 = $1

5,500 Machine Hours