Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. Conversion costs are applied based on units of production.
Compute Peters' cell conversion cost rate for Cell Y12. Round to the nearest cent.

Question

Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. Conversion costs are applied based on units of production.​
Compute Peters' cell conversion cost rate for Cell Y12. Round to the nearest cent.

Quizplus · Accepted Answer

The Answer of Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. Conversion costs are applied based on units of production.​
Compute Peters' cell conversion cost rate for Cell Y12. Round to the nearest cent.