Question

Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Machine setups Machine hours Hi-Voltage 11,000 bottles 2,000 gallons 920 pounds 11,000 bottles 4 labels per bottle 1,000 setups 180 MH EasySlim 280,000 bottles 29,000 gallons 6,000 pounds 280,000 bottles 2 label(s) per bottle 700 setups 3,450 MH Additional data from its two production departments follow. Driver Cost Department Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Labeling Machine setup Gallons Pounds Machine hours $ 1,240 3,460 1,452 Units Labels per bottle Setups $145,500 12,080 42,500

Answer 1

019 A B с D E F G H T J к L 1 2 1 Hi-Voltage Activity Overhead driver assigned incurred EasySlim Activity Overhead driver assigned incurred Expected Activity Activity Rate 3 4 5 6 31,000 Gallons $ 6,920 Pounds $ 3,630 Machine Hours $ 0.04 Per gallons 0.50 Per pounds 0.40 Per MH 2,000 $ 920 $ 180 $ 80 460 72 29,000 $ 6,000 $ 3,450 $ 1,160 3,000 1,380 7 8 Activity Cost Pools Expected Costs Mixing Department Liquid Materials $ 1,240 Dry Materials $ 3,460 Utilities $ 1,452 Bottling Department Bottles $ 145,500 Labelling $ 12,080 Machine Setups $ 42,500 Total Costs assigned Total Units Produced Cost per Unit 9 $ 10 291,000 Bottles 604,000 Labels 1,700 Setups $ 0.50 Per bottles 0.02 Per labels 25.00 Per setups 11,000 $ 44,000 $ 1,000$ $ 280,000 $ 560,000 $ 700$ $ $ 5,500 880 25,000 31,992 11,000 2.91 11 12 140,000 11,200 17,500 174,240 280,000 0.62 13 14 $ $ 15 16 17 18 2 Price per unit Cost per unit Profit per unit Hi-Voltage $ 7.35 $ 2.91 $ 4.44 19 20 21 22 23 3 Minimum Price that company should set per bottle of EasySlim = $0.62 24 ki Sheet119 Sheet110 Sheet120 Sheet121 Sheet123 Sheet123 Sheet1 24 Sheet125 sheat126 MIL

A B D E F G H K 1 2 1 EasySlim Hi-Voltage Activity driver Overhead assigned incurred Activity Cost Pools Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned oo vane w 1240 3460 1452 =2000+29000 =920+6000 =180+3450 Gallons =D5/E5 Pounds =D6/E6 Machine Hours =D7/E7 Per gallons 2000 Per pounds 920 Per MH 180 =G5*15 =G6*16 =G7*17 29000 6000 3450 =G5 K5 =G6*K6 =G7*K7 9 Mixing Department Liquid Materials Dry Materials Utilities Bottling Department Bottles Labelling Machine Setups Total Costs assigned Total Units Produced Cost per Unit 10 145500 12080 42500 =11000+280000 Bottles =(4*11000)+(2*280000) Labels =1000+700 Setups =D9/E9 =D10/E10 =D11/E11 Per bottles 11000 Per labels =4*11000 Per setups 1000 280000 =2*280000 700 11 =G9 19 =G10*110 =G11*111 =SUM(J4:J11) 11000 =J12/J13 =G9*K9 =G10*K10 =G11*K11 =SUM(L4:L11) 280000 =L12/L13 12 13 14 15 16 17 2 18 Hi-Voltage 1=7.35 =J14 Price per unit Cost per unit Profit per unit 19 =D18-D19 20 21 22 23 3 Minimum Price that company should set per bottle of EasySlim = $0.62 24

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