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drivers associated with these two manufacturing processes and the production support process follow Driver Process Components Activity Overhead Cost Quantity Changeover $ 458,000 Number
drivers associated with these two manufacturing processes and the production support process follow Driver Process Components Activity Overhead Cost Quantity Changeover $ 458,000 Number of batches 890 Machining Setups 311,000 Machine hours 8,100 224,000 Number of setups 200 $ 993,000 Finishing Welding $182,000 Welding hours 5,000 Inspecting Rework 224,000 Number of inspections 845 64,500 Rework orders 130 $470,500 Support Purchasing $139,000 Purchase orders 537 Providing space 36,500 Number of units 4,540 Providing utilities 67,000 Number of units 4,540 $242,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,500 3,040 Welding hours 2,400 3,500 Batches 445 445 Number of inspections 475 370 Machine hours 2,750 5,350 Setups 100 100 Rework orders Purchase orders 80 50 358 179 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 $300 for Model 145 and $130 for Model 212. 3. If the market price for Model 145 is $1.475 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.
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