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chapter 17 question 10 Check my work 10 Exercise 17-11 Using ABC to assess prices LO P3 1.33 points eBook Hint Way Cool produces two
chapter 17 question 10
Check my work 10 Exercise 17-11 Using ABC to assess prices LO P3 1.33 points eBook Hint 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. Print References Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 8,610 80 Finishing Welding Inspecting Rework Overhead Cost $ 474,150 397,782 149,600 $1,021,532 $ 322,050 330, 600 44,000 $ 696, 650 $ 173,240 31,600 76,130 $ 280,970 Welding hours Number of inspections Rework orders 5,700 870 160 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 5,700 5,700 two Additional production information concerning product lines follows. Model 212 3,800 3,900 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,800 435 460 3,250 40 80 325 435 410 5,360 40 80 163 Required: 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 $250 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $730.49 and the market price for Model 212 is $398.50, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Check my work Support $ 10 Purchasing Providing space Providing utilities 173,240 31,600 76,130 280,970 Purchase orders Number of units Number of units 488 5,700 5,700 $ 1.33 points Additional production information concerning its two product lines follows. eBook Hint ET Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,800 435 460 3,250 40 80 325 Model 212 3,800 3,900 435 410 5,360 40 80 163 Print References Required: 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 $250 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $730.49 and the market price for Model 212 is $398.50, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate $ 474,150 870 Number of batches 397,782 8,610 Machine hours 149,600 80 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 322,050 330,600 5,700 Welding hours 870 Inspections 160 Rework orders 44,000 $ 173,240 107,730 488 Purchase orders 5,700 Units Total overhead co Total units produc Overhead cost pelStep by Step Solution
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