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Green Spa produces two different spa products: Spring and Joy. The company uses three operations to manufacture the detergents: mixing, blending, and packaging. (Click the
Green Spa produces two different spa products: Spring and Joy. The company uses three operations to manufacture the detergents: mixing, blending, and packaging. (Click the icon to view the additional information.) The budgeted number of containers and expected direct materials and the budgeted conversion costs for May are as follows: i (Click the icon for the budget information.) Read the requirements Requirement 1. Calculate the conversion cost rates for each department. More Info Determine the formula and then calculate the conversion cost rate for each department. (Round the conversion cost rate to the nearest ce Conversion cost rate The budgeted number of containers and expected direct materials cost for each product are as follows: - X More Info Spring Number of containers 12,000 30,720 $ Joy 18,000 60,300 Direct materials cost $ Because of the materials used, Spring is produced in powder form in the mixing department and then transferred to the blending department and then onto packaging. Joy is produced in liquid form in the blending department and is then transferred to packaging. Green Spa applies conversion costs based on labor-hours in the mixing department. It takes 3 minutes to mix the ingredients for a container of Spring. Conversion costs are applied based on the number of containers in the blending departments and on the basis of machine-hours in the packaging department. It takes 0.6 minutes of machine time to fill a container, regardless of the product. The budgeted conversion costs for each department for May are as follows: Allocation of Budgeted Department Conversion Costs Conversion Cost Mixing Direct labor hours $ 1,080 Blending Number of containers $ 40,500 Packaging Machine hours $ 3,000 Print Done Print Done Help Me Solve This e Text Pages Get More Help Clear All Check Answer Requirements 1. Calculate the conversion cost rates for each department 2. Calculate the budgeted cost of goods manufactured for Spring and Joy for the month of May. 3. Calculate the cost per container for each product for the month of May. Print Done
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