Question
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 10,000 bottles 280,000 bottles Liquid materials 1,000
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.
| Hi-Voltage | EasySlim | |||
| Production volume | 10,000 | bottles | 280,000 | bottles |
| Liquid materials | 1,000 | gallons | 37,000 | gallons |
| Dry materials | 920 | pounds | 5,000 | pounds |
| Bottles | 10,000 | bottles | 280,000 | bottles |
| Labels | 3 | labels per bottle | 1 | label(s) per bottle |
| Machine setups | 400 | setups | 600 | setups |
| Machine hours | 220 | MH | 3,300 | MH |
Additional data from its two production departments follow.
| Department | Driver | Cost | ||
| Mixing department | ||||
| Liquid materials | Gallons | $ | 2,280 | |
| Dry materials | Pounds | 1,776 | ||
| Utilities | Machine hours | 2,112 | ||
| Bottling department | ||||
| Bottles | Units | $ | 145,000 | |
| Labeling | Labels per bottle | 9,300 | ||
| Machine setup | Setups | 25,000 | ||
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
