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CHAPTER 4 Home Work i Saved Help 5 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its
CHAPTER 4 Home Work i Saved Help 5 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. (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.) 10 points Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 800 6,000 120 eBook 000 Finishing Welding Inspecting Rework Overhead Cost $ 500,000 279,000 225,000 $1,004,000 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections Rework orders 3,000 700 300 Hint Support Print Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5,000 5,000 References Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Durcharnordor Model 145 1,500 800 400 400 1,800 60 160 20 Model 212 3,500 2,200 400 300 4,200 60 140 160 5 Required: 10 points 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 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. eBook Hint Print Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit References 0 Model 145 Model 212 $ $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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