Roo Mfg produces automobile instrument panels. Roo Mfg has adopted the JIT philosophy in their manufacturing plant. For the first year, Roo Mfg budgeted the following costs: All work must be shown for credit. Conversion Cost categories Budget

Labor $642,000

Supplies 112,000

Utilities 26,000

Total $780,000

Roo Mfg plans 3,000 hours of production for the first year. The materials cost is $125 per instrument panel. Each assembly of a panel requires 24 minutes. (remember, there are 60 minutes to an hour...)

The following events took place during the month of October: Oct. 5: Electronic parts were purchased to produce 7,600 instrument panels

Oct. 10: Conversion costs were applied for the production of 7,500 units

October 13: 7,420 units were started, completed, and transferred to finished goods

October 24: 7,300 units were sold to customers at a price of $400 per unit. Required:

A) Determine the budgeted conversion cost per hour. Answer: B) Determine the budgeted conversion cost per unit. Answer: