. Cookie Company produces parts for the auto industry. Part 2 is machined in Department #1, which

has the following budgeted conversion costs. Use 2,400 production hours and .03 hours per unit to

manufacture.

Labor

$220,000

Depreciation

30,000

Maintenance

10,000

Supplies

25,600

Total

$285,600

(a) Compute Department #1s budgeted cell conversion cost rate for the current year.

(b) Compute Part 2s budgeted cell conversion cost per unit.