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es Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company
es 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 Components Activity Changeover Machining Setups Overhead Cost $ 455,500 301,800 227,000 Driver Number of batches Machine hours Number of setups Quantity 930 7,690 120 $ 984,300 Finishing Welding $ 181,900 Welding hours 4,000 Inspecting 232,000 Number of inspections 780 Rework 61,300 Rework orders 170 $ 475,200 Support Purchasing Providing space Providing utilities $ 137,000 Purchase orders 473 30,650 60,130 Number of units 6,000 Number of units 6,000 $ 227,780 Additional production information concerning its two product lines follows. Units produced Model 145 Model 212 2,000 4,000 Welding hours 1,200 2,800 Batches 465 465 Number of inspections 490 290 Machine hours 2,290 5,400 Setups 60 60 Rework orders 70 100 Purchase orders 315 158
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