Che Exercise 17-9 Using departmental overhead rates to assess prices LO P2 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 Overhead Cost Driver Components Changeover Quantity $ 468,000 Number of batches Machining 730 306,000 Machine hours 8, 4a Setups 228.000 Number of setups 100 $1,002,800 Finishing Welding $ 188,000 Welding hours 4,900 Inspecting 221,000 Number of inspections 835 Rework 63,500 Rework orders $ 472,500 Support Purchasing $ 133,000 Purchase orders 465 Providing space 31,500 Number of units 4,660 Providing utilities 68,000 Number of units 4,660 $ 232,500 180 Additional production information concerning its two product lines follows 14 Het 510 CH 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 1,600 1,800 365 515 3,050 50 120 310 Model 212 3,060 3,100 365 328 5,350 50 60 155 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $170 for Model 212 3. If the market price for Model 145 is 5950 and the market price for Model 212 is $270, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Prey 1 of 1 SH! Next Hel Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Prey 1 of 1 !!! Next Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Required 2 > purung Wiew ww. prvi 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $170 for Model 212 3. If the market price for Model 145 is $950 and the market price for Model 212 is $270, determine the profit or loss per unit for each model Complete this question by entering your answers in the tobs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $170 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit C Premium 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $170 for Model 212 3. If the market price for Model 145 is $950 and the market price for Model 212 is $270, 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 If the market price for Model 145 is $950 and the market price for Model 212 is $270, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
