CUPORAMA Corp Three Types of Cups Were Produced in April

CUPORAMA Corp. manufactures cups. The company’s manufacturing operations and costs applied to products for April were:
$\begin{array}{|c|c|c|c|}\hline & \text { Moulding } & \text { Heat-treat } & \text { Finishing } \\\hline \text { Direct labour } & \$ 25,000 & \$ 12,500 & \$ 7,500 \\\hline \text { actory overhead } & 30,000 & 17,500 & 12,600 \\\hline \text { otal } & \$ 55,000 & \$ 30,000 & \$ 20,10 \\\hline\end{array}$ Three types of cups were produced in April.The quantities and direct materials costs were:
$\begin{array}{lcc}\text { Type } & \text { Quantity } & \text { Direct Materials } \\\hline \text { Casts } & 5,000 & \$ 15,000 \\\text { Cups } & 7,000 & 22,470 \\\text { Mugs } & 8,000 & 32,500\end{array}$ Casts are produced in the Moulding Department.Cups pass through the Moulding and Finishing departments.Mugs pass through all three departments.An operations costing system is used.
-Refer to the figure.What is CUPORAMA's conversion cost per unit for the heat-treat operation,rounded to two decimal places?

A) $1.50
B) $2.00
C) $2.50
D) $3.75

Correct Answer:

Verified

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