Operation Costing. UB Healthy Company manufactures three different types of vitamins: vitamin A, vitamin B, and a multivitamin. The company uses four operations to manufacture the vitamins: mixing, tableting, encapsulating, and bottling. Vitamins A and B are produced in tablet form (in the tableting department) and the multivitamin is produced in capsule form (in the encapsulating department). Each bottle contains 200 vitamins, regardless of the product. Conversion costs are applied based on the number of bottles in the tableting and encapsulating departments. Conversion costs are applied based on labor hours in the mixing department. It takes 1.5 minutes to mix the ingredients for a 200 unit bottle for each product. Conversion costs are applied based on machine hours in the bottling department. It takes 1 minute of machine time to fill a 200 unit bottle, regardless of the product. UB Healthy is planning to complete one batch of each type of vitamin in July. The budgeted number of bottles and expected direct material cost for each type of vitamin is as follows:

Vitamin A

Vitamin B

Multivitamin

Number of 200 unit bottles

12,000

9,000

18,000

Direct material cost

$23,040

$21,600

$47,520

The budgeted conversion costs for each department for July are as follows:

Department

Budgeted Conversion Cost

Mixing

$ 8,190

Tableting

24,150

Encapsulating

25,200

Bottling

3,510

1. Calculate the conversion cost rates for each department.

2. Calculate the budgeted cost of goods manufactured for vitamin A, vitamin B, and the multivitamin for the month of July.

3. Calculate the cost per 200 unit bottle for each type of vitamin for the month of July.