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Determine the budgeted cell conversion cost per hour

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Reference no: EM132718006

Problem - Krisco Company operates under the lean philosophy. As such, it has a production cell for its microwave ovens. The conversion cost for 2,400 hours of production is budgeted for the year at $4,800,000.

During January, 2,000 microwave ovens were started and completed. Each oven requires 6 minutes of cell processing time. The materials cost for each oven is $100.

Instructions - Use lean accounting to: Determine the budgeted cell conversion cost per hour.

Reference no: EM132718006

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