Optic Matrix Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a just-in-time product cell for each customer's instrument assembly. The data that follow concern only the Yokohama just-in-time cell.
For the year, Optic Matrix Inc. budgeted the following costs for the Yokohama production cell:
Optic Matrix Inc. plans 3,200 hours of production for the Yokohama cell for the year. The materials cost is $125 per instrument assembly. Each assembly requires 24 minutes of cell assembly time. There was no November 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.
The following summary events took place in the Yokohama cell during November:
- Electronic parts and wiring were purchased to produce 8,200 instrument assemblies in November.
- Conversion costs were applied for the production of 8,000 units in November.
- 7,850 units were started, completed, and transferred to finished goods in November.
- 7,750 units were shipped to customers at a price of $400 per unit.
Instructions:
1. Determine the budgeted cell conversion cost per hour.
$ per hour
2. Determine the budgeted cell conversion cost per unit.
$ per unit