Question
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 12,500 bottles 240,000 bottles Liquid materials 1,200
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 12,500 bottles 240,000 bottles Liquid materials 1,200 gallons 31,000 gallons Dry materials 1,120 pounds 14,000 pounds Bottles 12,500 bottles 240,000 bottles Labels 3 labels per bottle 2 label(s) per bottle Machine setups 800 setups 900 setups Machine hours 180 MH 3,450 MH Additional data from its two production departments follow. Department Driver Cost Mixing department Liquid materials Gallons $ 2,898 Dry materials Pounds 4,536 Utilities Machine hours 2,541 Bottling department Bottles Units $ 101,000 Labeling Labels per bottle 15,525 Machine setup Setups 34,000 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 $6.75 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?
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 12,500 bottles 1,200 gallons 1,120 pounds 12,500 bottles 3 labels per bottle 800 setups 180 MH EasySlim 240,000 bottles 31,000 gallons 14,000 pounds 240,000 bottles label(s) per 2 bottle 900 setups 3,450 MH Labels Machine setups Machine hours Additional data from its two production departments follow. Driver Cost $ Gallons Pounds Machine hours 2,898 4,536 2,541 Department Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Labeling Machine setup Units Labels per bottle Setups $101,000 15, 525 34,000 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 $6.75 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 Req 31 Req 4 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 ca to 2 decimal places.) ces Hi-Voltage Activity Rate Activity driver incurred Expected Activity Activity Expected Costs $ 0.04 per gallon $ 2,898 Mixing department Liquid materials Dry materials Itilities 4,536 2,541 32,200 Gallons 15,120 Pounds 3,630 Machine hours Hi-Voltage EasySlim Activity driver Overhead incurred assigned ty Activity Rate Overhead assigned Activity driver incurred $ 0.04 per gallon k purs ht per bottle ences per label per setupStep by Step Solution
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