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Required information [The following information applies to the questions displayed below.] Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.
Required information
[The following information applies to the questions displayed below.] Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.
Hi-Voltage | EasySlim | |||
Production volume | 12,500 | bottles | 180,000 | bottles |
Liquid materials | 1,400 | gallons | 37,000 | gallons |
Dry materials | 620 | pounds | 12,000 | pounds |
Bottles | 12,500 | bottles | 180,000 | bottles |
Labels | 3 | labels per bottle | 1 | label per bottle |
Machine setups | 500 | setups | 300 | setups |
Machine hours | 200 | MH | 3,750 | MH |
Additional data from its two production departments follow.
Department | Driver | Cost | ||
Mixing department | ||||
Liquid materials | Gallons | $ | 2,304 | |
Dry materials | Pounds | 6,941 | ||
Utilities | Machine hours | 1,422 | ||
Bottling department | ||||
Bottles | Units | $ | 77,000 | |
Labeling | Labels per bottle | 6,525 | ||
Machine setup | Setups | 20,000 | ||
Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? 3. If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells?
Req 1 to 2 Req 3 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. Round "Activit to 2 decimal places.) Hi-Voltage Easy Activity driver incurred Activity Expected Costs Expected Activity Activity Rate Overhead assigned Activity driver incurred Mixing department Liquid materials Dry materials Gallons Pounds Utilities Machine hours Bottling department Bottles Bottles Labels Labeling Machine setup Setups Overhead assigned If Hi-Voltage sells for $3.75 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
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