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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 12,500 bottles 200,000 bottles Liquid materials 1,800
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.
Hi-Voltage | EasySlim | |||
Production volume | 12,500 | bottles | 200,000 | bottles |
Liquid materials | 1,800 | gallons | 25,000 | gallons |
Dry materials | 820 | pounds | 8,000 | pounds |
Bottles | 12,500 | bottles | 200,000 | bottles |
Labels | 4 | labels per bottle | 2 | label(s) per bottle |
Machine setups | 700 | setups | 600 | setups |
Machine hours | 190 | MH | 4,200 | MH |
Additional data from its two production departments follow.
Department | Driver | Cost | ||
Mixing department | ||||
Liquid materials | Gallons | $ | 1,876 | |
Dry materials | Pounds | 2,646 | ||
Utilities | Machine hours | 2,634 | ||
Bottling department | ||||
Bottles | Units | $ | 63,750 | |
Labeling | Labels per bottle | 13,500 | ||
Machine setup | Setups | 19,500 | ||
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 $6.55 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?
Complete this question by entering your answers in the tabs below. Req 1 to 2 Req3 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 per bottle" answers to 2 decimal places.) Hi-Voltage Easy Slim Activity Overhead Activity driver Overhead Expected Costs Activity driver incurred Expected Activity Activity Rate assigned incurred assigned Mixing department Liquid materials Gallons Dry materials Pounds Utilities Machine hours Bottling department Bottles Bottles Labeling Labels Machine setup Setups Reg 1 to 2 Reg 3 Req 4 If Hi-Voltage sells for $6.55 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 Req 1 to 2 Req3 Req 4 What is the minimum price that the company should set per bottle of Easy Slim? What is the minimum price that the company should set per bottle of Easy Slim?
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