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.

Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

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.
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Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

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.
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Compute Peters' budgeted cell conversion cost per unit for Cell Y12.