Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $5,105,700 and materials costs were $30 per unit. Planned production included 5,856 hours to produce 18,300 motor drives. Actual production for August was 1,950 units, and motor drives shipped amounted to 1,400 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. Oa. $279.00 Ob. $3,646.93 Oc. $871.88 C. Od. $2,618.31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%
Sifton Electronics Corporation manufactures and assembles electronic
motor drives for video cameras. The company assembles the motor drives
for several accounts. The process consists of a lean cell for each customer.
The following information relates to only one customer's lean cell for the
coming year. For the year, projected labor and overhead was $5,105,700
and materials costs were $30 per unit. Planned production included 5,856
hours to produce 18,300 motor drives. Actual production for August was
1,950 units, and motor drives shipped amounted to 1,400 units.
Conversion costs are applied based on units of production
From the foregoing information, determine the cell conversion cost rate.
a. $279.00
Ob. $3,646.93
Oc. $871.88
d. $2,618.31
Transcribed Image Text:Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $5,105,700 and materials costs were $30 per unit. Planned production included 5,856 hours to produce 18,300 motor drives. Actual production for August was 1,950 units, and motor drives shipped amounted to 1,400 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a. $279.00 Ob. $3,646.93 Oc. $871.88 d. $2,618.31
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education