In December, Sara\'s Sodas produced 3.8 million liters of the beverage. Manufact

Question

In December, Sara's Sodas produced 3.8 million liters of the beverage. Manufacturing overhead was $1,350,000 and the cost per liter was $0.45. Labor costs were 20 percent of materials cost. Required: a. Calculate the materials cost for December. (Enter your answer in dollars not in millions.) Answer is complete but not entirely correct. Materials cost in December 1,710,000 3 b. Calculate the labor cost for December. (Enter your answer in dollars not in millions.) Answer is complete and correct. Labor cost in December $ 60,000

Explanation / Answer

a Material cost in december $      300,000.00 b Labor cost in december $        60,000.00 Explanation Total Cost (3800000*0.45) $ 1,710,000.00 Less: overhead cost $ 1,350,000.00 Material and labor cost $      360,000.00 Less: labor cost=(360000*.2/1.2) $        60,000.00 Material cost $      300,000.00

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