Question
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 9,500 bottles 240,000 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 | 9,500 | bottles | 240,000 | bottles |
Liquid materials | 1,800 | gallons | 29,000 | gallons |
Dry materials | 1,420 | pounds | 15,000 | pounds |
Bottles | 9,500 | bottles | 240,000 | bottles |
Labels | 4 | labels per bottle | 2 | label(s) per bottle |
Machine setups | 1,100 | setups | 300 | setups |
Machine hours | 120 | MH | 3,450 | MH |
Additional data from its two production departments follow.
Department | Driver | Cost | ||
Mixing department | ||||
Liquid materials | Gallons | $ | 2,464 | |
Dry materials | Pounds | 9,031 | ||
Utilities | Machine hours | 1,071 | ||
Bottling department | ||||
Bottles | Units | $ | 124,750 | |
Labeling | Labels per bottle | 20,720 | ||
Machine setup | Setups | 49,000 | ||
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 $6.45 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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Complete this question by entering your answers in the tabs below.
- Req 1 to 2
- Req 3
If Hi-Voltage sells for $6.45 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.)
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