Question

Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.

	Hi-Voltage		EasySlim
Production volume	9,500	bottles	240,000	bottles
Liquid materials	1,800	gallons	29,000	gallons
Dry materials	1,420	pounds	15,000	pounds
Bottles	9,500	bottles	240,000	bottles
Labels	4	labels per bottle	2	label(s) per bottle
Machine setups	1,100	setups	300	setups
Machine hours	120	MH	3,450	MH

Additional data from its two production departments follow.

Department	Driver	Cost
Mixing department
Liquid materials	Gallons	$	2,464
Dry materials	Pounds		9,031
Utilities	Machine hours		1,071
Bottling department
Bottles	Units	$	124,750
Labeling	Labels per bottle		20,720
Machine setup	Setups		49,000

Required:
1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim?
3. If Hi-Voltage sells for $6.45 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells?

Complete this question by entering your answers in the tabs below.

• Req 1 to 2
• Req 3

Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Round "Activity Rate" and "Average cost per bottle" answers to 2 decimal places.)

	Hi-Voltage EasySlim Activity Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Activity driver incurred Overhead assigned Mixing department Liquid materials Gallons Dry materials Pounds Utilities Machine hours Bottling department Bottles Bottles Labeling Labels Machine setup Setups

Complete this question by entering your answers in the tabs below.

• Req 1 to 2
• Req 3

If Hi-Voltage sells for $6.45 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

	Hi-Voltage Price per unit Cost per unit Profit (loss) per unit

Answer 1