Question: Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August,

Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows:

Maintenance and supplies $1,650,000
Depreciation 700,000
Supporting labor 825,000
Total $3,175,000

Alaskan planned 2,500 total machine hours for the year.

Calculate Alaskan's budgeted cell conversion cost rate for the year. $ per machine hour

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