Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $600,000 for 2,000 production hours. Each unit requires 21 minutes of cell process time. During March, 500 DVR players were manufactured in the cell. The materials cost per unit is $60. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 500 DVR players were assembled and placed in finished goods. 480 DVR players were sold for $240 per unit. a. Determine the budgeted cell conversion cost per hour.
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