Options for #2 -

Bemidii Company has the following data for one of its production departments: Theoretical velocity: 210 units per hour Productive minutes available per year: 44,000,000 Annual conversion costs: $308,000,000 Actual velocity: 84 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 minutes per unit Standard cost per minute per minute Conversion cost per unit 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 minutes per unit Conversion cost per unit per unit What incentive exists for managers when cycle time costing is used? To reduce cycle time To increase cycle time To keep cycle time constant 3. What if the actual velocity is 147 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 time minutes per unit Conversion cost per unit per unit