Cycle Time and Velocity

Norton Company has the following data for one of its production departments:

Theoretical velocity: 200 units per hour Productive minutes available per year: 49,000,000Annual conversion costs: $343,000,000Actual velocity: 80 units per hour

Required:

1.Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest cent.

Actual cycle time________- 1

minutes per unit

Standard cost per minute$fill in the blank 2

per minute

Conversion cost per unit$fill in the blank 3

per unit

2.Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places.

Theoretical cycle time________4

minutes per unit

Conversion cost per ________ 5

per unit

3.What ifthe actual velocity is 140 units per hour? What is the conversion cost per unit? If required, round your intermediate calculations and final answers to two decimal places.

Actual cycle__________ minutes per unit

Conversion cost ___________per unit

Your question has already been answered