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Using the data in the exhibits, determine the conversion cost of a 100-unit batch of BW-18 beeswax candle, a month's production of spare candles for

Using the data in the exhibits, determine the conversion cost of a 100-unit batch of BW-18 beeswax candle, a month's production of spare candles for inventory, and a month's work done for other divisions under the present model

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Exhibit 1: Calculation of Plantwide Labour and Overhead Hourly Rate for October Labour Dollars Hours Wick making $40,873 2,527 Wax melting 28,760 2,138 Molding 143,899 7,678 Custom work 61,137 3,712 Packing 218.638 15.357 Total labour 493,307 31,412 Overhead 824.492 Total labour and overhead 1,317,799 Hourly Rate = $1,317,799/31,412 = $41.95 per hour (= $15.70 labour + $26.25 overhead) Exhibit 2: Proposed Departmental Labour and Overhead Hourly Rates Labour Rate Overhead Total Cost Department per Hour per Hour per Hour Wick making $20.10 $23.53 $43.63 Wax melting 18.50 22.61 41.11 Molding 19.75 46.89 66.64 Custom work 23.10 30.36 53.46 Packing 15.00 15.89 30.89 Exhibit 3: Direct Labour Hour Distribution for Three MCT's Activities BW-18 Beeswax Spare Candles Work for Candles (per Batch for Inventory Other Divisions Department of 100) (per Month) (per Month) Wick making 8 hours 122 hours 270 hours Wax melting 5 hours 108 hours 216 hours Molding 23 hours 446 hours 863 hours Custom work Packing 14 hours Total 50 hours 676 hours 1,349 hoursExhibit 4: Departmental Overhead Rates Based on Normal Volume Normal Volume Department (DLI-I) Wick making 2,500 Wax melting 2,400 Molding 8,000 Custom work 3,600 Packing M Total 34,000 Normal Overhead Overhead Cost* $59,100 51,750 369,000 110,865 m 855,053 (per DLI-I) $23.64 21.56 46.13 30.30 E 25.15 * Estimated overhead cost if each department operates at its normal volume

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