4-46 Process costing Connor Chemical Company's plant processes batches of

organic chemical products through three stages after starting with raw

materials: (1) mixing and blending, (2) reaction chamber, and (3) pulverizing

and packing. Connor Chemical's estimates for the total conversion costs for 8,760

each of the three processing stages are shown in the following table. These

costs include production labor assigned to each stage, support labor

performing tasks (such as handling the output of the previous stage and

setting up for the new stage), and laboratory testing. Additional materials for

packing are needed in the pulverizing and packing stage:

MIXING AND BLENDING REACTION CHAMBERS PULVERIZING AND PACKING

Production labor $253,000 $1,144,000 $396,000

Engineering support 22,000 50,600 24,200

Materials handling 19,800 19,800 29,700

Equipment maintenance 11,000 35,200 8,800

Laboratory expenses 22,000 22,000 4,400

Depreciation 44,000 176,000 52,800

Power 35,200 85,800 26,400

General and administrative 17,600 17,600 17,600

Total conversion costs $424,600 $1,551,000 $559,900

Total number of process hours 8,760 35,040 8,760

Determine the estimated conversion cost driver rate per process hour for each stage. (Round

to three digits after the decimal point.)

(b) Consider two of Connor Chemical's representative products, C206 and C208. Both products

are derivatives of ethyl oleate and at the start of the process require the same basic raw

materials. Using the information below, determine the total cost of a batch of C206 and

a batch of C208:

C206 C208

Materials:

Raw materials, beginning of process $1,488.00 $1,488.00

Packing materials $175.20 $280.80

Conversion hours:

Mixing and blending 6 hours 6 hours

Reaction chamber 24 hours 24 hours

Pulverizing and packing 4 hours 8 hours