Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assemble the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,120,000 and materials costs were $31 per unit. Planned production included 5,120 hours to produce 16,000 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a. $2,108.11 b. $195.00 c. $1,668.45 d. $609.38

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assemble.
the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates t
only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,120,000 and materials
costs were $31 per unit. Planned production included 5,120 hours to produce 16,000 motor drives. Actual production for
August was 1,870 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of
production
From the foregoing information, determine the cell conversion cost rate.
a. $2,108.11
b. $195.00
c. $1,668.45
d. $609.38
Transcribed Image Text:Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assemble. the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates t only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,120,000 and materials costs were $31 per unit. Planned production included 5,120 hours to produce 16,000 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a. $2,108.11 b. $195.00 c. $1,668.45 d. $609.38
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