Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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?

image text in transcribedimage text in transcribed

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 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Social Work Ethics Audit A Risk Management Tool

Authors: Frederic G. Reamer

1st Edition

0871013282, 978-0871013286

More Books

Students also viewed these Accounting questions