chapter 17

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 730 8,560 220 Finishing Welding Inspecting Rework Overhead Cost $ 412, 450 486,600 407,800 $1,226,050 $ 256,620 291,600 53,000 $ 601,220 $ 205,500 32,000 132,430 $ 369, 930 Welding hours Number of inspections Rework orders 4,700 810 200 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 548 8,700 8,700 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 2,900 1,800 365 490 3,250 110 Model 212 5,800 2,900 365 320 5,310 110 70 183 130 365 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 of the direct labor and direct materials costs per unit are $260 for Model 145 and $117 for Model 212 3. If the market price for Model 145 is $62785 and the market price for Model 212 is $312.64, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Check my work Required 1 Required 2 Required a 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 Rote Model 145 Activity driver Overhead Incurred signed Active Incur 5 412.450 406.600 407.000 730 Number of batches 8,560 Machine hours 220 Setups Activity Components Changeover Machining Betups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 266.620 291,600 $3.000 4.700 Welding hours 810 Inspections 200 Rework orders $ 205,600 540 Purchase orders 164.430 8.700 Units Tot overhead cost Total units produced Overhead cost per unit Required) mswers to 2 decimal places.) Model 212 Activity Rate Model 145 Activity driver Overhead Incurred assigned Activity driver incurred Overhead assigned Total overhead cost Total units produced Overhead cost per unit