Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 4-4A Evaluating product line costs and prices using ABC LO P3 (The following information applies to the questions displayed below.) Bright Day Company produces

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 4-4A Evaluating product line costs and prices using ABC LO P3 (The following information applies to the questions displayed below.) Bright Day Company produces two beverages, Hi-Voltage and Easy Slim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 10,500 bottles 1,000 gallons 620 pounds 10,500 bottles 5 labels per bottle 300 setups 140 MH EasySlim 240,000 bottles 37,000 gallons 13,000 pounds 240,000 bottles label(s) per bottle 800 setups 3,300 MH Labels Machine setups Machine hours Additional data from its two production departments follow. Driver cost Department Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Labeling Machine setup Gallons Pounds Machine hours $ 2,280 8,853 1, 032 Units Labels per bottle Setups $75, 150 15,975 27,500 Check my work Problem 4-4A Parts 1, 2 & 3 Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? 3. If Hi-Voltage sells for $6.35 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? Complete this question by entering your answers in the tabs below. Req 1 to 2 Req3 Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Rou to 2 decimal places.) Hi-Voltage Actis Activity Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Mixing department Liquid materials Dry materials Gallons Pounds Check my work Required information Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? (Do not round your intermediate calculations. Rou to z decimal places.) Hi Voltage Activity Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Act Moxing department Liquid materials Gallons Dry malenals Utilities Bottling department Bottles Labeling Machine setup Req> > Required information duct line using ABC. What is the cost per bottle for HI-Voltage and EasyStim? (Do not round your intermediate calculations. Round "Activity Rate" and "Average Hi-Voltage pected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Activity driver incurred Overhead assigned Gallons Pounds Machine hours Bottles Labels Req3 > Required information Req 1 to 2 Req3 If Hi-Voltage sells for $6.35 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Hi-Voltage Price per unit Cost per unit Profit (loss) per unit Reg 1 to 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting With QuickBooks 2021

Authors: Donna Kay

20th Edition

1264069197, 9781264069194

More Books

Students also viewed these Accounting questions