I have grasped this concept but cannot seem to be able to remember it. I am having a hard time understanding it. Could you please explain how to find the answer. Thank you.
Best Brew Corporation manufactures two brands of wine: Regular and Extra RichBelow is the current year production data for the company:Regular Extra RichDirect material in pounds 225000 110000Direct labor hours 45000 65000Machine hours 36000 24000Number of setups 1450 2375Number of gallons produced 450000 90000The 335000 pounds of material had a total cost of $753750. Direct labor is $21 per hour.The company has total overhead production costs of $2212125.a. If Best Brew Corporation applies factory overhead using direct labor hours compute the total production cost and the unit cost for each brandb. If Best Brew Corporation applies factory overhead using machine hours compute the total production cost and the unit cost for each brand.c. Assume that Best Brew Corporation has established the following activity centers cost drivers and costs to apply factory overhead.Cost Pool Cost Driver Cost VolumeEquipment Maintenance # of machine hours $450000 60000Production Setup # of setups $248625 3825Material Handling ounds of Materials $703500 335000Storage Costs # of gallons produced $810000 540000Compute the total cost and the unit cost for each brand.d. Explain why the unit cost for each model is different across the three methods of overhead application. How can this information benefit the organization?