Question
Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs: Labor $330,000 Depreciation
Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs: Labor $330,000 Depreciation 32,000 Maintenance 12,000 Supplies 26,000 Total $400,000 All costs are driven by machine hours. Total possible hours for the year are 2,800. It takes .03 hours to machine one unit of Part X2.
a. Compute Department #1's budgeted cell conversion cost rate for the current year. Round your answer to two decimal places, if necessary. $ per machine hour
b. Compute Part X2's budgeted cell conversion cost per unit. Round your answer to two decimal places, if necessary. $ per unit
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