Exercise 04-8 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 Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity see 6,eee 120 Finishing Welding Inspecting Rework overhead Cost $ 500, eee 279,000 225,000 $1,004,000 $ 180,300 210,000 75,000 $ 465,30 $ 135,000 32, eee 65.000 $ 232,000 welding hours Number of inspections Rework orders 3,000 700 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5,000 5,000 Additional production information concerning its two product lines follows Units produced welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 300 40 4ee 1, see Ge 16e 300 Model 212 3,50e 2,200 400 360 4,200 60 140 150 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 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. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 $ 0 $ 0 Model 145 Model 212 0 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. Model 145 Model 212 Market price Required 1. Using ABC.compute the overhead cost per unit for each product line 2. Determine the total cost per un for each product line of the direct labor and direct materials costs per unit are $250 for Model 145 and $100 for Model 212 3. If the market price for Model 145 15 $820 and the market price for Model 212 $480, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. ured Required Required Using Ac, compute the overhead cost per unit for each product linn (Round your final anwento 2 deomal places.) Erected Coats Expected Activity Activity Rate Model 145 Activity driver Overhead incurred M212 Activity driver Overband incurred Components Changeover Machining 5 500,000 279.000 225 000 Do Naber of batches 5.000 Machine 120 Setups impeding 100,300 210.000 75.000 300 Wing hours 700 impechon 300 Rework orders S Purchasing Providing and 135 000 37 000 ha 5.000 Total head.com Owhead on perunt Required 2 > 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 per unit are $250 for Model 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 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 $480, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
