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2 points eBook H Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The
2 points eBook H Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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 Changeover Activity Overhead Cost Driver Number of Quantity $454,250 batches 790 Machining Setups 362,082 Machine hours 7770 74,000 Number of setups 40 Print $890,332 Finishing Welding $241,500 Welding hours 4.600 References Number of Inspecting Rework 291,200 910 Inspections 38.250 Rework orders 170 $570,950 Support Purchasing $191,250 Purchase orders 510 Providing space Providing utilities 30,600 Number of units 109,080 Number of units 7,200 7,200 $330,930 Model 145 2,400 Welding hours Additional production Information concerning its two product lines follows Units produced Model 212 4,800 1,400 3.200 Batches 395 395 Number of Inspections 500 410 Machine hours 2.450 5.320 Setups 20 20 Rework orders 100 70 Purchase orders 340 170 Required 1. Using ABC, compute the overhead cost per unit for each product line (Round your intermediate calculations and round activity rate and cost per unit answers to 2 decimal places) Padivity Expected Costs Expected Activity Activity Rate Components incurred Changeover Machining 3 404.250 382.002 790 Number of bathes 7.770 Ma
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