4-7

Exercise 04-8 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.) Quantity Process Activity Componente Changeover Machining Setups Overhead Cost $ 450, 500 301,600 226,000 $978,100 Driver Number of batches Machine hours ber of setups Finishing Inspecting 226.000 Welding hours Number of inspections Rourk orders Support $ 469,000 $ 137,500 31,900 60.600 $ 230.000 Purchase orders Number of units Number of its Additional production information concerning its two product lines for Model 145 1.600 Model 212 3,200 Units produced Welding hours Number of spections Yehin OUT Required: 1. Using a plantalde overhead rate based on maching hours, compute the overhead cost per unit for each product line Prov 11 Next > Search or type URL Additional production Information concerning its two product lines follows. Model 145 1.600 2,600 Model 212 3.200 2,600 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,260 5,300 B0 340 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 of the direct labor and direct materials costs per unitare 1210 for Modal 145 and 5160 for Model 212 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $758 and the market price for Model 212 is $470, determine the profit or loss per unkt for each model Model 145 Model 212 Market price