Figure 6-20

Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were:

Molding Heat-treat Finishing

Direct labor $25,000 $12,500 $ 7,500

Factory overhead 30,000 17,500 12,600

Total $55,000 $30,000 $20,100

Three types of cups were produced in April. The quantities and direct materials costs were:

Type Quantity Direct Materials

Casts 5,000 $15,000

Cups 7,000 22,470

Mugs 8,000 32,500

Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used.

38. Refer to Figure 6-20. What is Outrageous Cups' conversion cost per unit for the heat-treat operation, rounded to two decimal places?

a. $1.50

b. $2.00

c. $2.50

d. $3.75

39. Refer to Figure 6-20. What is Outrageous Cups' total cost for Casts in April?

a. $13,750

b. $26,275

c. $28,750

d. $70,000

40. Refer to Figure 6-20. What is Outrageous Cups' total cost per unit for Cups in April?

a. $4.09

b. $7.30

c. $7.84

d. $11.05