Cycle Time and Velocity Norton Company has the following data for one of its production departments: Theoretical velocity: 640 units per hour Productive minutes available per year: 11,000,000 Annual conversion costs: $55,000,000 Actual velocity: 320 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. 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. What incentive exists for managers when cycle time costing is used? 3. What if the actual velocity is 448 units per hour? What is the conversion cost per unit? If required, round your intermediate calculations and final answers to two decimal places. \& it