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Subject Company produces two types of product Large and Larger Two work orders for two batches of the products are shown below, along with
Subject Company produces two types of product Large and Larger Two work orders for two batches of the products are shown below, along with some additional cast information: Large Larger Work Order 10 Work Order 11 Direct materials (actual costs) $45,000 $75,000 Applied conversion costs: Mixing Cooking Bottling Batch size (bottles) $12,000 $12,000 $10,000 $15,000 5.000 5.000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What is Golden Ring Company's unit cost of Larger? $3.50 $16.90 $23.90 $20.40
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