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Cant figure out how to calculate materials and labor. Return to quest 2 10 points Way Cool produces two different models of air conditioners. The
Cant figure out how to calculate materials and labor.
Return to quest 2 10 points 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. (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.) Process Activity Overhead Cost Driver Quantity Components Changeover $ 451,500 Number of batches 930 Machining 300,400 Machine hours 7,560 Setups 227,000 Number of setups 100 $ 978,900 Finishing $ 182,200 Welding hours 4,600 Inspecting 234,000 Number of inspections 835 Rework 61,500 Rework orders 200 477 79 $ 477,700 Support Purchasing $ 137,500 Purchase orders 540 Providing space 30,900 Number of units 6,600 Providing utilities 60,680 Number of units 6,600 $ 229,080 Welding 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 2,200 2,000 465 510 2,310 50 130 360 Model 212 4,400 2,600 465 325 5,250 50 70 180 Answer is not complete. 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 222.97 per machine hour $ 1,685,680 7,560 Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212. Overhead Assigned Model 145 Activity Plantwide Driver OH rate 2,310$ 222.97 5.250 $ 222.97 Total Overhead Cost $ 515,061 $ 1,170,593 Units OH Cost Produced per unit 2,200 $ 234.12 4.400$ 266.04 Model 212 Total manufacturing cost per unit: Materials and Labor Model 145 377.55 X $ Model 212 809,277.81 X $ Overhead 234.12 266.04 Total manufacturing cost $ 611.67 $ 809,543.85 3. If the market price for Model 145 is $752 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market priceStep by Step Solution
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