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.

All "Required" Parts are part of 1 problem. Please solve ALL in one go, so I don't have to post multiple times, PLEASE.

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 Components Changeover Quantity $ 580,000 Number of batches 800 Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 $1,004,000 Finishing Welding $ 180,300 Welding hours 3,000 Inspecting 210,000 Nunber of inspections 700 Rework 75,000 Rework orders 300 $ 465,380 Support Purchasing $ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 Additional production information concerning its two product lines follows Model 145 Units produced Model 212 1,500 3,500 Welding hours 800 2,200 Batches Number of inspections 400 400 400 Machine hours 300 1,800 4,200 Setups 60 60 Rework orders 160 140 Purchase orders 300 150 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 $250 for Model 145 and $180 for Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Pequired 1 Required 2 Required 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 Model 145 Activity river Overhead incurred Activity Inc 500,000 279.000 225.000 300 Number of batches 6.000 Machine hours 120 Setup Activity Components Cha OVE Machining Se Finishing Widing Inspecting work Sport Durchasing Pro 5 18000 210,000 75.000 3.000 Welding 700 Inspection 300 Ruw orders 1 435.000 97.000 Who Passord 5.000 Unte stion by entering your answers in the tabs below. od 2 Required 3 the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model 145 Activity deliver Overhead incurred atalgned Model 212 Activity driver Overhead incurred assigned $ 500,000 279.000 225,000 500 Number of batches 3,000 Machine hours 120 Setups $ 180,300 210,000 76,000 3.000 Welding hours 700 Inspections 000 Rework Orders $ 135,000 97.000 450 Purchase order 5.000 Units lite $ $ Total overhead cost Total units produced Overhead cont per unit 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 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determ model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs 145 and $180 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 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 a and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $820 and the market price for Model 212 is each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit