Question
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 9,500 bottles 180,000 bottles Liquid materials 1,400
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.
| Hi-Voltage | EasySlim | |||
| Production volume | 9,500 | bottles | 180,000 | bottles |
| Liquid materials | 1,400 | gallons | 23,000 | gallons |
| Dry materials | 1,120 | pounds | 16,000 | pounds |
| Bottles | 9,500 | bottles | 180,000 | bottles |
| Labels | 4 | labels per bottle | 3 | label(s) per bottle |
| Machine setups | 1,000 | setups | 450 | setups |
| Machine hours | 190 | MH | 3,450 | MH |
Additional data from its two production departments follow.
| Department | Driver | Cost | ||
| Mixing department | ||||
| Liquid materials | Gallons | $ | 1,220 | |
| Dry materials | Pounds | 8,560 | ||
| Utilities | Machine hours | 1,092 | ||
| Bottling department | ||||
| Bottles | Units | $ | 113,700 | |
| Labeling | Labels per bottle | 28,900 | ||
| Machine setup | Setups | 43,500 | ||
Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? 3. If Hi-Voltage sells for $6.65 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? 4. What is the minimum price that the company should set per bottle of EasySlim?
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Family Child Care Audit Manual Strategies For Protecting Your Business In An IRS Audit RedLeaf Business Series
Authors: Tom Copeland
1st Edition
1929610211, 978-1929610211
