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Check my work 291.525 Exercise 04-11 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces
Check my work 291.525 Exercise 04-11 Using ABC to assess prices LO P3 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 Quantity Components Changeover $ 491,550 Number of batches 870 Machining 402,480 Machine hours 8,600 Setups 37,100 Number of setups 20 $ 931,130 Finishing Welding $ 429,660 Welding hours 6,200 Inspecting Number of inspections 845 Rework 39,60 Rework orders 180 $ 760,785 Support Purchasing $ 172,05 Purchase orders 465 Providing space 30,70 Number of units 6,000 Providing utilities 83,900 Number of units 6,000 $ 286,650 Additional production information concerning its two product lines follows. Model 145 2,000 Model 212 4,000 Units produced 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 2,800 2,000 435 485 3,250 10 70 310 Model 212 4, een 4,200 435 360 5,350 10 110 155 Required: 1. Using ABC. compute the overhead cost per unit for cach product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $675.93 and the market price for Model 212 is $384.30, 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
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