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 |
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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 | |||
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