Chapter 15: The Balanced Scorecard: Strategic-Based Control

Jul 14, 2014 · 1. Theoretical rate = $12,960,000/1,440,000 = $9.00 per minute. Theoretical conversion cost per unit = $9.00 × 65 = $585. 2. Applied conversion cost per unit = $9.00 × 100 = $900. Note: 60/0.6 = 100 minutes used per unit. 3. An incentive exists to reduce product cost by reducing cycle time. For example, current cycle time is 100 minutes per unit. ................
................