ssume that a company has the following data for one of its manufacturing cells: Theoretical velocity – 40 units per hour; Productive minutes available (per year) – 1,200,000; Annual conversion costs - $4,800,000; and Actual velocity – 30 units per hour. choose the correct letter of answer Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. a.$6 b.$8 c.$7 d.$3   calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. a.$6 b.$8 c.$7 d.$3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume that a company has the following data for one of its manufacturing cells: Theoretical velocity – 40 units per hour; Productive minutes available (per year) – 1,200,000; Annual conversion costs - $4,800,000; and Actual velocity – 30 units per hour.

choose the correct letter of answer

  • Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute.
    a.$6
    b.$8
    c.$7
    d.$3

 

  • calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute.
    a.$6
    b.$8
    c.$7
    d.$3
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