Question 5 rame Limited makes three products: A, B and C. The budget for the following three months was as follows: Sales units Sales price per unit Variable cost per unit 10 p A B 1,000 1,500 €31 €10 €20 2,000 €10 €8 €4 However, the machine which is used in the production of all three products has malfunctioned. A temporary repair job has been done, but the total machine hours available for the next three months (until the replacement machine arrives) has been reduced to 4,800 hours. Each unit of product A requires 3 machine hours, each unit of Product B requires 1 machine hour and each unit of Product C requires 0.75 hours. On this basis, for the next three months, the product that Frame Limited will prioritise in relation to production is Product Under the revised plan, the production and sales of Product A will be units.

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Prn.5

5. Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $869,700 for 2,230 production hours. Each unit requires 12 minutes of cell process time. During March, 990 DVR players were manufactured in the cell. The materials cost per unit is $69. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 990 DVR players were assembled and placed in finished goods. 940 DVR players were sold for $260 per unit. a.  Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_1 per hour b.  Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_2 per unit c.…