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 Components Activity Changeover Machining Setups Quantity Overhead Cost $ 460,650 364,381 225,600 $1,050,631 $ 338,240 339,300 Driver Number of batches Machine hours Number of setups 7,870 120 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 5,60e Support $ $ Purchasing Providing space Providing utilities 736,540 137,400 31,400 se.289 Purchase orders Number of units Number of units 6, 6.ee Additional production information concerning its two product lines follows Model 145 Units produced Welding hours Batches Number of inspections Machine hours 5, Rework orders Purchase orders Required: 1. Using ABC. 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 $220 for Model 145 and $115 for Model 212 3. If the market price for Model 145 is $70736 and the market price for Model 212 is $381.04, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Check Required: 1. Using ABC, 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 $220 for Model 145 and $115 for Model 212 3. If the market price for Model 145 is 570736 and the market price for Model 212 is $38104, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Components Changeover Machining Model 145 Activity dever Overhead Model 212 Activities Overhead 330 Number of banches 7.870 Machine hours Finishing Welding 5.600 Weldin 870 specie Purchasing Required ) Additional production information concerning its two product lines follows. 6. Model 145 Units produced Welding hours Batches Number of inspections Hachine hours Model 212 2,000 2.600 5.080 3,000 Setups Rework orders Purchase orders Required: 1. Using ABC.compute the overhead cost per unit for each product line 2. Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $220 for Model 545 and 5115 for Model 212 3. If the market price for Model 145 is S70736 and the market price for Model 212 is $38104, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required: 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 $115 for Model 212. Round your finala t o 2 decimal places) Materals and Laber per unit Model 145 Model 212 Over Total cost per un Required 1 Required 3 ) P 11 Nexd
