Alaskan Pattern Company Makes Dressmakers' Patterns Using a Machine That

Essay

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: $\begin{array}{lc}\text { Maintenance and supplies } & \$ 1,650,000 \\\text { Depreciation } & 700,000 \\\text { Supporting labor } & 825,000 \\\text { Total }&\$3,175,000\end{array}$ Alaskan planned 2,500 total machine hours for the year.
Calculate Alaskan's budgeted cell conversion cost rate for the year.