Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bright Day Company produces two beverages, Hi-Voltage and Easy Slim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Machine setups

image text in transcribedimage text in transcribedimage text in transcribed

Bright Day Company produces two beverages, Hi-Voltage and Easy Slim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Machine setups Machine hours Hi-Voltage 10,500 bottles 1,200 gallons 920 pounds 10,500 bottles 4 labels per bottle 1,100 setups 210 MH EasySlim 180,000 bottles 27,000 gallons 18,000 pounds 180,000 bottles 2 label(s) per bottle 900 setups 3,750 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 $ 2,256 6,622 2,772 Units Labels per bottle Setups $76,200 8,040 70,000 Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? 3. If Hi-Voltage sells for $6.05 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? Req 1 to 2 Reg 3 Reg 4 Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? (Do not round your intermediate calculations. Round "Activity Rate" and "Average cost to 2 decimal places.) Hi-Voltage Activity driver incurred Easy Slim Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Overhead assigned Activity Rate Gallons Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Labeling Pounds Machine hours Bottles Labels Machine setup Setups Req 1 to 2 Req3 Reg 4 If Hi-Voltage sells for $6.05 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Hi-Voltage Price per unit Cost per unit Profit (loss) per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting 2007 FASB Update Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

12th Edition

0470128763, 978-0470128763

More Books

Students also viewed these Accounting questions

Question

What steps can advertisers take to overcome zipping and zapping?

Answered: 1 week ago