Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 25 pos Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
2 25 pos 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 Activity Overhead cont Driver Quantity Componente Changer $ 478.000 Number of batches Machining 308,000 Machine hours Setups 227.000 Number of setup 40 51,013,000 Finishing Welding 182,000 Welding hours 6.100 Inspecting 223.000 Number of inspections 360 Rework 62.500 Bework ordere 200 Support Purchasing Troviding Providing utilities Purchase orders Number of units Number of units 34,500 70.000 251.500 4.90 Additional production information concerning its two product lines follows. Model 145 Model 2 2.400 Batches UDS umber of inspection 480 Machine hours 5,310 Setup 20 20 Rework ordere 130 70 Purchase orders 318 159 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $875 and the market price for Model 212 is $310, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. no ney cu 4 rey 2 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less 25 points Components department References Finishing department 0 Support department 0 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support $ $ 0 0 0 + Model 212 Activity Driver Departmental OH Rate Components Total Overhead Cost 5 0 $ 0 0 Required 2 > 3 50 points 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 Ativity Overhead Coat Driver Quantity Components Changeover 810 Number of batches $ 498,150 Machining 188,170 Machine hours 8.330 Setup 144.000 Number of setup $1,030,328 Finishing Welding $ 277,950 Welding hours 5.100 Inspecting 352,000 Number of Inspections 880 Rework 74,200 Rework order 280 $ 704,150 Support Purchasing 5 170, 710 Purchase orders 518 Providing space 31,300 Number of unite 6,600 Providing usilities Number of units 6,600 $ 304,119 Additional production information concerning its two product lines follows. Model 145 Model 212 unite produced 2,200 Welding hours 2,200 2.900 Batches 405 405 Number of inapections 480 499 Machine hours 3,280 Betupa 40 Rework ordere 170 110 Purchase order 345 173 3,050 Required 1. Using ABC, 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 $180 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $626.46 and the market price for Model 212 is $360.80, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Model 145 Activity driver Overhead incurred assigned Activity Expected Activity Model 212 Activity driver Overhead incurred assigned Activity Rate $ 498,150 388.178 144,000 810 Number of batches 8.390 Machine hours 80 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and lites 277,950 5,100 Welding hours 380 Inspections 280 Rework orders 74.200 $ 178,710 125,400 518 Purchase orders 6.600 Units $ $ Total overhead cost Total units produced Overhead cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

A Textbook Of Accounting For Management

Authors: S.N. Maheshwari

3rd Edition

9325956195, 978-9325956193

More Books

Students also viewed these Accounting questions

Question

=+a) Was this an observational study or an experiment?

Answered: 1 week ago