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Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 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 Machining Setups Quantity 790 7,510 180 Finishing Welding Inspecting Rework Overhead Cost Driver $ 456,500 Number of batches 300,600 Machine hours 227,500 Number of setups $ 984,600 $ 181,500 Welding hours 232,000 Number of inspections 60,250 Rework orders $ 473,750 $ 135,000 Purchase orders 32,200 Number of units 60,650 Number of units $ 227,850 5,500 795 180 Support Purchasing Providing space Providing utilities 518 5,100 5,100 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 2,200 395 520 2,260 90 70 345 Model 212 3,400 3,300 395 275 5, 250 90 110 173 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 1,259,825 $ 167.75 Machine hours 7,510 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 and $120 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 0 Model 145 Model 212 2,260 5,250 1,700 3,400 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $735 and the market price for Model 212 is $470, determine the profit or loss per unit for each model. Model 145 Model 212 Market price mework Saved Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,780,000 625,000 Expected production Direct labor hours required Hazardous waste disposed Chairs 207,000 units 268,000 DLH 400 pounds Tables 14,000 units 15,600 DLH 1,200 pounds Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours. Product Activity Driver OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit Chairs Tables 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of. Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit Chairs Tables