Question
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.)
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