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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
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 2,800 1,000 395 510 3,350 100 170 320 Model 212 5,600 4,000 395 400 5,320 100 90 160 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $120 for Model 212. 3. Assume if the market price for Model 145 is $915 and the market price for Model 212 is $610, determine the profit or loss per unit for each model. Expected Costs Expected Activity Activity Rate $ 541,150 410,958 376,000 790 Number of batches 8,670 Machine hours 200 Setups per batch per machine hour per setup Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 256,500 364,000 5,000 Welding hours 910 Inspections 260 Rework hours per welding hour per inspection per rework order 71,500 184,800 156,240 480 Purchase orders 8,400 Units per purchase order per unit Model 145 ------Activity rate---------- Activity driver incurred Overhead assigned per batch per machine hour per setup Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities per welding hour per inspection per rework order per purchase order per unit Model 212 -----Activity rate----- Activity driver incurred Overhead assigned per batch per machine hour per setup Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities per welding hour per inspection per rework order per purchase order per unit Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $120 for Model 212. (Round your intermediate calculations and final answers to 2 decimal places.). Model 145 Model 212 Materials and Labor per unit Overhead per unit Total cost per unit $ 0.00 $ 0.00 Assume if the market price for Model 145 is $915 and the market price for Model 212 is $610, determine the profit or loss per unit for each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit $ 0.00 $ 0.00
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