Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,591,000 and materials costs were $34 per unit. Planned production included 6,048 hours to produce 18,900 motor drives. Actual production for August was 1,800 units, and motor drives shipped amounted to 1,500 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a.$190.00 b.$593.75 c.$1,995.00 d.$2,394.00

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,591,000 and materials costs were $34 per unit. Planned production included 6,048 hours to produce 18,900 motor drives. Actual production for August was 1,800 units, and motor drives shipped amounted to 1,500 units. Conversion costs are applied based on units of production

From the foregoing information, determine the cell conversion cost rate.

a.$190.00
b.$593.75
c.$1,995.00
d.$2,394.00
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