13.11 Lean Accounting

Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $650,100 for 1,970 production hours. Each unit requires 20 minutes of cell process time. During March, 790 DVR players were manufactured in the cell. The materials cost per unit is $65. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 790 DVR players were assembled and placed in finished goods. 4. 750 DVR players were sold for $310 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. $ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $ per unit