Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
2 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 111 points Quantity 730 Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups 8 ts350 220 Finishing Welding Inspecting Rework Overhead Cost $ 462,000 302.000 232 $996, $ 194,000 227,000 61.500 $ 482,500 $ 141,000 36,500 70,000 $ 247,500 Helding hours Number of Inspections Rework orders ebook 4,500 015 230 Hirit Support Purchasing Providing space Providing utilities Print 465 4,990 4,990 Purchase orders Number of units Number of units References Additional production information concerning its two product lines follows. Model 145 1,900 1,200 Model 212 3,090 3,100 365 Units produced Welding hours Batches her of in pections 365 475 200 CI 340 5,39 DULU Number of inspections Machine hours Setups Rework orders Purchase orders 475 3,250 110 lee 310 110 130 155 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 $300 for Model 145 and $210 for Model 212 3. If the market price for Model 145 is $1,400 and the market price for Model 212 is $320, 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 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 2 Rescu wyny ywers. Required 1 Required 2 Required 3 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 15254 POR Components department hce Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support $ 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support $ 0 0 Required 2 > uei 22 i 2, gee e pron OF TOSS per un OCHI Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $300 for Model 145 and $210 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. 44 Required 1 Required 2 Required 3 If the market price for Model 145 is $1,400 and the market price for Model 212 is $320, determine the profit or loss per unit for each model (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) 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

Financial Accounting For Executives And MBAs

Authors: Ferris & Wallace

2nd Edition

1934319627, 978-1934319628

More Books

Students also viewed these Accounting questions

Question

*5. What is ?

Answered: 1 week ago