111.Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has thefollowing budgeted conversion costs: Labor $330,000 Depreciation ...





111.Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has thefollowing budgeted conversion costs:





























Labor




$330,000




Depreciation




32,000




Maintenance




12,000




Supplies




26,000




Total




$400,000




All costs are driven by machine hours. Total possible hours for the year are 2,800. It takes .03 hours to machineone unit of Part X2.



(a)Compute Department #1's budgeted cell conversion cost rate for the current year.Round to the nearest cent.



(b)Compute Part X2's budgeted cell conversion cost per unit. Round to the nearestcent.









112.Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissuepaper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds.Annual budgeted cell conversion costs were as follows:

























Maintenance and supplies




$1,650,000




Depreciation




700,000




Supporting labor




825,000




Total




$3,175,000




Alaskan planned 2,500 total machine hours for the year.





Calculate Alaskan's budgeted cell conversion cost rate for the year.





113.Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled productionof 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters hadbudgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000.





Compute Peters' budgeted cell conversion cost per unit for Cell Y12.











May 15, 2022
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