Determine the budgeted cell conversion cost per hour


Response to the following problem:

Media Inc. uses a just-in-time strategy to manufacture DVD players. The company manufactures DVD players through a single product cell. The budgeted conversion cost for the year is $760,500 for 1,950 production hours. Each unit requires 10 minutes of cell process time. During May, 950 DVD players are manufactured in the cell. The materials cost per unit is $85.

The following summary transactions took place during May:

1. Materials are purchased for May production.

2. Conversion costs were applied to production.

3. 950 DVD players are assembled and placed in finished goods.

4. 900 DVD players are sold for $260 per unit.

Determine the budgeted cell conversion cost per hour.

Request for Solution File

Ask an Expert for Answer!!
Cost Accounting: Determine the budgeted cell conversion cost per hour
Reference No:- TGS02122695

Expected delivery within 24 Hours