One of the makeup kit models that Tiegs Corporation produces is targeted at professional women. The...

 

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One of the makeup kit models that Tiegs Corporation produces is targeted at professional women. The goal for Year 2 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced. The industry market size for makeup kits increased 5% from Year 1 to Year 2. The following additional data are available for Years 1 and 2: Year 1 Year 2 Makeup kits produced and sold Selling price Direct materials (kilograms) Direct material costs per kilogram Marufacturing capacity (kits) Total converelon costs 850,000 935,000 $175 364,660 $52 1,050,000 $34,650,000 $180 340,000 $50 1,000,000 $30,000,000 Conversion costs per unut of capadty $30 $33 O $1,232,500F O $1,768,000 U $1,700,000 U $1,689,000 F $1,232,500 U One of the makeup kit models that Tiegs Corporation produces is targeted at professional women. The goal for Year 2 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced. The industry market size for makeup kits increased 5% from Year 1 to Year 2. The following additional data are available for Years 1 and 2: Year 1 Year 2 Makeup kits produced and sold Selling price Direct materials (kilograms) Direct material costs per kilogram Marufacturing capacity (kits) Total converelon costs 850,000 935,000 $175 364,660 $52 1,050,000 $34,650,000 $180 340,000 $50 1,000,000 $30,000,000 Conversion costs per unut of capadty $30 $33 O $1,232,500F O $1,768,000 U $1,700,000 U $1,689,000 F $1,232,500 U

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Option A is correct 1232500 F Conversion costs are the sum of direct labo... View the full answer