4-8

Exercise 04-9 Using departmental overhead rates to assess prices LO P2 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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 910 8,400 20 Finishing Welding Inspecting Rework Overhead Cost $ 476,000 306,000 234,000 $1,016,000 $ 182.000 232,000 62.500 $ 476.500 $ 137,000 31,000 62,000 $ 230,000 Welding hours Number of inspections Rework orders 6,200 915 250 Support Purchasing Providing space Providing utilities Purchase orders Number of unite Number of units 4,900 4.700 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 1,600 2,600 455 525 3,050 Model 212 3.100 3.600 455 390 5,350 130 350 175 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. ? Determine the total net ner un for each in the Hiver lahan it matara n Prey 1 of 1 Next > 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 Components department Finishing department Support department Model 145 Activy Doh Rata Total Overhead Cost Components Finishing Model 212 Departmental OHR Total Overhead Cost Component Finishing Prev 1 of 1 !!! Next Q Search or type URL Rework orders Purchase orders 130 120 350 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 $280 for Model 145 and $190 for Model 212. 3. If the market price for Model 145 is $2.000 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 the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 and $190 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 Required 3 Required 1 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 $280 for Model 145 and $190 for Model 212. 3. If the market price for Model 145 is $2,000 and the market price for Model 212 is $320, determine the profit or loss per unit for eac model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $2,000 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 (los) per unit Rare ( Required 2 Prev 1 of 1 !! Next