Question

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

	Hi-Voltage		EasySlim
Production volume	10,500	bottles	260,000	bottles
Liquid materials	2,000	gallons	37,000	gallons
Dry materials	720	pounds	15,000	pounds
Bottles	10,500	bottles	260,000	bottles
Labels	3	labels per bottle	1	label(s) per bottle
Machine setups	400	setups	550	setups
Machine hours	200	MH	3,300	MH

Additional data from its two production departments follow.

Department	Driver	Cost
Mixing department
Liquid materials	Gallons	$	3,120
Dry materials	Pounds		8,646
Utilities	Machine hours		1,750
Bottling department
Bottles	Units	$	135,250
Labeling	Labels per bottle		17,490
Machine setup	Setups		14,250

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 $7.55 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

Answer 1