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[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
[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 | 12,000 | bottles | 290,000 | bottles |
Liquid materials | 1,800 | gallons | 37,000 | gallons |
Dry materials | 1,220 | pounds | 18,000 | pounds |
Bottles | 12,000 | bottles | 290,000 | bottles |
Labels | 4 | labels per bottle | 2 | label(s) per bottle |
Machine setups | 800 | setups | 500 | setups |
Machine hours | 170 | MH | 3,150 | MH |
Additional data from its two production departments follow.
Department | Driver | Cost | ||
Mixing department | ||||
Liquid materials | Gallons | $ | 1,164 | |
Dry materials | Pounds | 12,493 | ||
Utilities | Machine hours | 2,324 | ||
Bottling department | ||||
Bottles | Units | $ | 60,400 | |
Labeling | Labels per bottle | 25,120 | ||
Machine setup | Setups | 26,000 | ||
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 $7.55 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. Reg 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. Round "Activity Rate" and "Average cost per bottle" answers to 2 decimal places.) HI-Voltage Activity driver incurred Activity Expected Costs Expected Activity EasySilm Activity driver Overhead incurred assigned Overhead assigned Activity Rate Mixing department Gallons Pounds Machine hours Liquid materials Dry materials Ulilities Bottling department Bottles Labeling Machine setup Bottles Labels Setups Req 1 to 2 Req3 > Req3 > Req 1 to 2Step by Step Solution
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