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At Jamal's Juices, each smoothie requires 18 oz of juice, which costs $0.20/oz. It takes 0.10 hrs of direct labor to make smoothies, at $9.55 per DLH. Variable overhead costs $2.2/smoothie, and fixed costs total $95,000 per year. They expect to produce 95,000 smoothies next year.
Problem 1: Calculate the manufacturing overhead budget for next year.
Option 1: $90,725
Option 2: $304,000
Option 3: $299,725
Option 4: $209,000
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