11 Help Save & Exercise 04-11 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 770 8,460 Finishing 4,800 Welding Inspecting Rework Overhead Cost $ 435, e5e 389,160 150, Bee $ 975,010 $ 331,680 331,875 84,000 $ 747,555 $ 178,200 30,300 61,380 $ 269,880 Welding hours Number of inspections Rework orders 885 280 Support 540 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 4,000 4,800 Additional production information concerning its two product lines follows. Model 145 Model 212 Prey 1 of 1 Next > 11 Help Save & Exercise 04-11 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 770 8,460 Finishing 4,800 Welding Inspecting Rework Overhead Cost $ 435, e5e 389,160 150, Bee $ 975,010 $ 331,680 331,875 84,000 $ 747,555 $ 178,200 30,300 61,380 $ 269,880 Welding hours Number of inspections Rework orders 885 280 Support 540 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 4,000 4,800 Additional production information concerning its two product lines follows. Model 145 Model 212 Prey 1 of 1 Next >