VARIABLE AND ABSORPTION COSTING, AND BREAKEVEN POINTS. Shasta Hills, a winery in
British Columbia, manufactures a premium white cabernet and sells primarily to distributors. Wine is sold in cases of one dozen bottles. In the year ended December Shasta Hills sold cases at an average selling price of $ per case. The following additional data are for Shasta Hills for the year ended December assume constant unit costs and no price, rate, or efficiency variances:
tableBeginning inventory, January casesEnding inventory, December casesFixed manufacturing overhead,,Fixed operating costs,,Variable costs per case:Direct materialsGrapes$ per caseBottles corks, and crates,$ per caseDirect labourBottlingS per caseWinemaking$ per caseAging$ per case
