Spa produces two different spa​ products: Calm and Spring. The company uses three operations to manufacture the​ product

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Spa produces two different spa​ products: Calm andSpring.
The company uses three operations to manufacturethe​ products: mixing,​ blending, and packaging.
1.
Calculate the conversion cost rates for each department.
2.
Calm
Spring
May.
3.
May.
Calm
is produced in powder form in the mixing​ department, thentransferred to the blending​ department, and finally topackaging.
Spring undergoes no​ mixing; it is produced in liquid formin the blending department and then transferred to packaging. Inthe mixing​ department,
Lilly Spa applies conversion costs based on​ labor-hours.It takes 3 minutes to mix the ingredients for a container of Calm.In the blending​ department, conversion costs are appliedbased on the number of containers and in thepackaging​ department, on the basis of​ machine-hours. Ittakes 1.2 minutes of machine time to fill a​ container,regardless of the product.
Calm
Spring
Number of containers
12,000
11,000
Direct materials cost
$32,580
$32,670
The budgeted conversion costs for each department for
May are as​ follows:
Department
Allocation of Conversion Costs
Budgeted Conversion Cost
Mixing
Direct labor-hours
$660
Blending
Number of containers
$28,750
Packaging
Machine-hours
$1,840