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Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of alr conditioners. The company produces the
Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of alr conditioners. The company produces the mechanical systems In their components department. The mechanical systems are combined with the housing assembly In its finishing department. The activities, costs, and drivers assoclated with these two manufacturing processes and the production support process follow. (Loss amounts should be Indicated with a minus sign. Round your Intermedlate calculetlons and round "Cost per unlt and OH rate" answers to 2 declmal places.) Process Activity Components Changeover Overhead Cost Driver $454,588 381,6e8 226,5e8 $ 982,688 $ 182,388 222,808 62,8e8 466, 3e8 $ 136,588 31,85e 68,778 $ 228,328 Machining Setups Number of batches Machine hours Number of setups 718 7,680 48 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 5,788 830 238 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 563 5,480 5,488 Support Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 1,800 2,480 355 518 2,288 3,688 3,380 355 328 5,488 28 158 375 188
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