Exercise 17-11 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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 910 8,220 160 Finishing Welding Inspecting Rework Overhead Cost 5 486,850 387,162 295, 200 $1,169,212 5282, 240 295,750 57750 $635,740 $ 163,475 30,200 87,610 $ 201,205 Welding hours Number of inspections Rework orders 5,600 845 210 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 503 6,300 6,300 Additional production information concering its two product lines follows Prey 1 of 1 Noxt 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 2,100 2,600 455 515 2,950 Be 120 335 Model 212 4,200 3,000 455 330 5.270 Be 40 168 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 $116 for Model 212 3. If the market price for Model 145 is $743.93 and the market price for Model 212 is $366.39, 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 Prey 1 of 1 Next Check my work Expected Costs Expected Activity Activity Rate Model 145 Activity dever Overhe incurred assione $ 486,850 387162 295,200 910 Number of batches 8.220 Machine hours 160 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 282.240 295,750 57.750 5.600 Welding hours 845 Inspections 210 Rework order 5 163,475 117 810 503 Purchase orders 6.300 Units 5 Total overhead cost Total units produced Overhead cost per unit Required 2 > d Costs Expected Activity Activity Rate Model 145 Activity driver Overhead Incurd assigned Model 212 Activity driver Overhead incuntud assigned 486,850 387,162 295200 910 Number of batches 8,220 Machine hours 160 Setups 282,240 295,750 57.750 5.600 Welding hours 845 Inspections 210 Rework orders 163 475 117,810 503 Purchase orders 6.300 Units S 0 5 0 Total overhead cost Total units produced Overhead cost per unit Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required by 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 $116 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 Prey 1 of 1 BI RE Next 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 $743.93 and the market price for Model 212 is $366.39, 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
