Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Check Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces

image text in transcribed
image text in transcribed
image text in transcribed
Check Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 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.) Process Activity Overhead Cost Driver Quantity Components Changeover $ 457,000 Number of batches 730 Machining 301,600 Machine hours 7,720 Setups 226,000 Number of setups 180 $984,660 Finishing Welding $ 181, 18e Welding hours 4,700 Inspecting 235,000 Number of Inspections Rework 61,100 Rework orders 180 $ 47,200 Support Purchasing $ 135,000 Purchase orders 503 Providing space 30, 550 Number of units 4,200 Providing utilities 60, 170 Number of units 4,200 $ 225,720 760 Artritional martin information oncerning it tunnunt linae follows Prey 1 of 1 !!! Next Providing utilities CH Number of units le $ 225, 720 4,2 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 1,400 1,400 365 475 2,320 90 120 335 Model 212 2,800 3,300 365 285 5,400 90 60 168 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $290 for Model 145 and $190 for Model 212. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are 5290 for Model 145 and $190 for Model 212 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $732 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 Prow 1 of 1 Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Informed Decisions Using Data

Authors: Michael Sullivan III

5th Edition

9780134133539

Students also viewed these Accounting questions

Question

BSq 1 : .

Answered: 1 week ago