Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 10,500 bottles 260,000 bottles Liquid materials 2,000

Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.

Hi-Voltage EasySlim
Production volume 10,500 bottles 260,000 bottles
Liquid materials 2,000 gallons 37,000 gallons
Dry materials 720 pounds 15,000 pounds
Bottles 10,500 bottles 260,000 bottles
Labels 3 labels per bottle 1 label(s) per bottle
Machine setups 400 setups 550 setups
Machine hours 200 MH 3,300 MH

Additional data from its two production departments follow.

Department Driver Cost
Mixing department
Liquid materials Gallons $ 3,120
Dry materials Pounds 8,646
Utilities Machine hours 1,750
Bottling department
Bottles Units $ 135,250
Labeling Labels per bottle 17,490
Machine setup Setups 14,250

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 $7.55 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells?

Complete this question by entering your answers in the tabs below.

  • Req 1 to 2
  • Req 3

Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Round "Activity Rate" and "Average cost per bottle" answers to 2 decimal places.)

Hi-Voltage EasySlim
Activity Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Activity driver incurred Overhead assigned
Mixing department
Liquid materials Gallons
Dry materials Pounds
Utilities Machine hours
Bottling department
Bottles Bottles
Labeling Labels
Machine setup Setups

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

Step: 3

blur-text-image

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

21st Edition

978-1259916984

More Books

Students also viewed these Accounting questions