Evaluating product line costs and prices using ABC L.O. P3
[The following information applies to the questions displayed below.]
| Healthy Day Company produces two beverages, PowerPunch and SlimLife. Data about these productsfollow. |
| PowerPunch | SlimLife | |||
| Production volume | 12,500 | bottles | 180,000 | bottles |
| Liquid materials | 1,400 | gallons | 37,000 | gallons |
| Dry materials | 620 | pounds | 12,000 | pounds |
| Bottles | 12,500 | bottles | 180,000 | bottles |
| Labels | 3 | labels per bottle | 1 | label per bottle |
| Machine setups | 500 | setups | 300 | setups |
| Machine hours | 200 | MH | 3,750 | MH |
|
|
||||
| Additional data from its two production departments follow. |
| Department | Driver | Cost | |||
| Mixing department | |||||
| Liquid materials | Gallons | $ | 2,304 | ||
| Dry materials | Pounds | 6,941 | |||
| Utilities | Machine hours | 1,422 | |||
| Bottling department | |||||
| Bottles | Units | $ | 77,000 | ||
| Labeling | Labels per bottle | 6,525 | |||
| Machine setup | Setups | 20,000 | |||
|
|
|||||