Evaluating product line costs and prices using ABC L.O. P3

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

 

 

 

 

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