Stillwater Spa produces two different spa products: Ocean and Fresh. The company uses three operations to manufacture the products: mixing, blending, and packaging. (Click the icon to view the additional information.) The budgeted number of containers and budgeted direct materials cost for each product in May are: (Click the icon for the budget information.) - More info Requirements Ocean is produced in powder form in the mixing department, then transferred to the blending department, and finally to packaging. Fresh undergoes no mixing; it is produced in liquid form in the blending department and then transferred to packaging. In the mixing department, Stillwater Spa applies conversion costs based on labor-hours. It takes 3 minutes to mix the ingredients for a container of Ocean. In the blending department, conversion costs are applied based on the number of containers and in the packaging department, on the basis of machine-hours. It takes 0.3 minutes of machine time to fill a container, regardless of the product. 1. Calculate the conversion cost rates for each department. 2. Calculate the budgeted cost of goods manufactured for Ocean and Fresh for the month of May. 3. Calculate the cost per container for each product for the month of May. - More info Ocean Fresh Number of containers 21,000 11,000 Direct materials cost $ 68,040 $ 37,620 The budgeted conversion costs for each department for May are as follows: Allocation of Conversion Costs Budgeted Conversion Cost Direct labor-hours $ 1,680 Department Mixing Blending Packaging Number of containers $ 40,000 Machine-hours $ 960 Requirement 1. Calculate the conversion cost rates for each department. Determine the formula and then calculate the conversion cost rate for each department. (Round the conversion cost rate to the nearest cent.) Budgeted conversion cost Budgeted quantity of cost driver = Conversion cost rate Mixing