Refer to problems 33 and 34. Brazil Brewery hired an engineering consulting firm to perform an engineering estimate of beer production costs. The consulting firm came up with the following monthly cost estimates based on information for the current period:
Facilities costs……………………………………………. $26,008.00
Beer production level costs…………………………..$13.5 per hL produced
Raw materials costs……………………………………..$0.70 per kg consumed
Batch level costs………………………………………… $60 per batch
Water costs………………………………………………… $0.90 per hL consumed
CIP costs…………………………………………………… $18.5 per CIP performed
New product costs………………………………………. $500 per new product
Required:
Assuming the following level of cost driver volume for a month, what is the estimated cost using the engineering estimates? (Don’t forget to include the facilities costs in your estimate.)
1,650…………………………….. hL of beer produced
25,500…………………………… kg of raw materials consumed
100……………………………….. Batches
10,800…………………………… hL of water consumed
120……………………………….. CIPs
1…………………………………… New product