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17-33 f'"__"" ""_'"D " ""' "' f'""""""' Operation costing. Egyptian Spa produces two different...


i am very confused about how to go about this problem, especially number 1

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17-33 f‘“__"" "“_‘“D " "“' “‘ f‘""""""' Operation costing. Egyptian Spa produces two different spa products:
Relax and Refresh. The company uses three operations to manufacture
the products: mixing, blending, and packaging. Because of the materials
used, Relax is produced in powder form in the mixing department, then
transferred to the blending department, and finally on to packaging.
Refresh undergoes no mixing; it is produced in liquid form in the blending department and then transferred to packaging. Egyptian Spa applies conversion costs based on labor-hours in the
mixing department. It takes 3 minutes to mix the ingredients for a
container of Relax. Conversion costs are applied based on the number
of containers in the blending departments and on the basis of machine-
hours in the packaging department. It takes 0.5 minutes of machine
time to fill a container, regardless of the product. The budgeted number of containers and expected direct materials cost for each product are as follows: Relax Heiresll
Number of co ntainers 24,000 18,000
Direct materials cost $11,160 $13,140 The budgeted conversion costs for each department for May are as follows:
Allocation ol
Department Conversion Oasis Budgeted Conversion Cost
Mixing Direct labor-hours $11,100
Blending Number of containers $20,160
Packaging Machine-hours 5 2,800
Required 1. Calculate the conversion cost rates for each department. 2. Calculate the budgeted cost of goods manufactured for Relax
and Refresh for the month of May. 3. Calculate the cost per container for each product for the month of May.

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