Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

18 0.8 points Skipped Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The

image text in transcribedimage text in transcribed

18 0.8 points Skipped 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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Overhead Cost $ 500,000 Driver Quantity Number of batches. Machining Setups 279,000 Machine hours 800 6,000 225,000 Number of setups 120 $1,004,000 eBook Finishing Welding $ 180,300 Welding hours 3,000. Inspecting Rework 210,000 Number of inspections 700 75,000 Rework orders 300 $ 465,300 Hint Support Purchasing $ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 Print Additional production information concerning its two product lines follows. References Units produced Model 145 1,500 Model 212 3,500 Welding hours 800 2,200 Batches 400 Number of inspections 400 400 300 Machine hours 1,800 4,200 Setups Rework orders 60 60 160 140 Purchase orders 300 150 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212. Overhead Assigned Model 145 Model 212 0 Activity Driver Plantwide OH rate $ Total Overhead Cost 0 Units Produced OH Cost per unit $ Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting Information for Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th edition

978-0078025761

More Books

Students also viewed these Accounting questions

Question

33. Can MRP and kanban be used at the same time and if so, how?

Answered: 1 week ago

Question

31. Where does a kanban system work best?

Answered: 1 week ago

Question

32. Where does a drum-buffer-rope system work best?

Answered: 1 week ago