What is the budgeted cost for a milliliter of blood and a milliliter of vaccine under the
Question:
What is the budgeted cost for a milliliter of blood and a milliliter of vaccine under the existing cost system in 2019, respectively? Data is below:
Exhibit 1: 2019 Budgeted Operating Income Statement
Revenues: 3,000,000
Direct Labor: 500,000
Direct Materials: 250,000
Transportation: 750,000
Storage: 650,000
Testing: 400,000
Equipment Setup: 350,000
Operating Profit: 100,000
Exhibit 2: Operating Data for 2019
Blood Unit versus Vaccine Unit:
Number of days 1 ml blood or vaccine stay in the warehouse: 10 vs 30
Transportation Miles: 20 million vs 10 million
Number of Tests: 5,000 vs 5,000
Equipment Setup Hours: 2000 vs 500
Exhibit 3: Budgeted and Actual Direct Labor Usage in 2019
Budgeted
Actual
Hourly Wage
DL Dollars
Hourly Wage
DL Dollars
BCD
25
450,000
20
460,000
IDP
25
50,000
30
150,000
Total
500,000
610,000