Cher 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 870 8.190 180 Finishing Welding Inspecting Rework Overhead Cost $ 478,000 304,000 225,000 $1,007,000 $ 188,000 232.000 63,000 $ 483,000 5 139,000 37,000 61.000 5 237,000 Welding hours Number of Inspections Rework orders 5,800 860 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of unita 549 5,100 100 Additional production information concerning its two product lines follows. Model 145 2,000 Model 212 3.100 Units produced Check Additional production information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setups Revork orders Purchase orders Model 145 2,000 1,800 435 520 2,850 90 100 366 Model 212 3,100 4.000 435 340 5,340 90 50 183 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 $220 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $290, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. C 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 Activity Departmental Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost es Components Finishing Support Required 2 > Prey 1 of 1 Next Saved Help Say Lumpreces qui y enceny your answer US WW. 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 $220 for Model 145 and $180 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Modal 212 Materials and Labor per unit Overhead cost per unit Total cost per unit compree Hs quesuun wy entering your answers HELUS Veuw. Required 1 Required 2 Required 3 If the market price for Model 145 is $1,925 and the market price for Model 212 is $290, 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
