Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cycle Time and Conversion Cost per Unit Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 70 minutes

Cycle Time and Conversion Cost per Unit

Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 70 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are $1,188,000 per year. The total labor minutes available are 132,000. During the year, the cell was able to produce 1.2 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs.

Required:

1. Compute the theoretical conversion cost per unit. $ per unit

2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). $ per unit

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

The Only Tax Audit Guide Youll Ever Need

Authors: Janet M. Sydlaske, Richard K. Millcroft

1st Edition

0471510769, 978-0471510765

More Books

Students also viewed these Accounting questions