Egyptian Spa produces two different spa products: Relax and Refresh. The company uses three operations to manufacture the detergents: mixing, blending, and packaging.

Because of the materials used, Relax is produced in powder form in the mixing department and then transferred to the blending department and then onto packaging. Refresh is produced in liquid form in the blending department and is then transferred to packaging. Egyptian Spa applies conversion costs based on laborhours in the mixing department. It takes 3 minutes to mix the ingredients for a container of Relax. Conversion costs are applied based on the number of containers in the blending departments and on the basis of machinehours in the packaging department. It takes 0.5 minutes of machine time to fill a container, regardless of the product.

The budgeted number of containers and expected direct materials and the budgeted conversion costs for May are as follows:

The budgeted number of containers and expected direct materials cost for each product are as follows:

	Relax			Refresh
Number of containers		24,000			18,000
Direct materials cost		$17,160			$13,140

The budgeted conversion costs for each department for May are as follows:

	Allocation of	Budgeted
Department	Conversion Costs	Conversion Cost
Mixing	Direct labor hours	$11,760
Blending	Number of containers	$20,160
Packaging	Machine hours	$2,800

1.	Calculate the conversion cost rates for each department.
2.	Calculate the budgeted cost of goods manufactured for Relax and Refresh for the month of May.
3.	Calculate the cost per container for each product for the month of May.