Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air 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 associated with these two manufacturing processes and the production support process follow Process Activity Overhead Coss Driver Quantity Components Changeover $ 458,000 Number of batches Machining 910,000 Machine hou Setups 226,000 aber se setups $994,500 Tinishing Welding $102,000 Welding hours 3,600 Inspecting 229,000 Number of inspections Rework 64,900 Feuerk ouders 270 $ 475,000 Support Purchasing 6143,000 Purchase ordera 537 Providing space 30, 500 aniber etwa Droviding utilities 63,000 Number of unica 4.600 $236,500 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inapeeciona Machine hours Setups Rexork orders Purchase orders Hodei 145 Model 212 1,500 3,100 2,200 3,400 SE5 470 950 2, 450 5, 280 230 120 179 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Bose your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $320, 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 Datermine departmental overhead rates and compute the averhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Activity Driver Departmental OH Rate Total Overhead Cost Model 145 Components Finishing Support Modal 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air 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 associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Quantity 730 7,730 Finishing Welding Inspecting Rework Overhead Cost Driver $ 458,000 Number of batches 310,000 Machine hours 226,000 Number of setups $ 994,000 $ 182,000 Welding hours 229,000 Number of inspections 64,000 Rework orders $ 475,000 $ 143,000 Purchase orders 30, 500 Number of units 63,000 Number of units $ 236,500 5,600 820 270 Support Purchasing Providing space Providing utilities 537 4,600 4,600 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,500 3, 100 Welding hours 2,200 3,400 Batches 365 365 Number of inspections 470 350 Machine hours 2,450 5,280 Setups 20 Rework orders 150 120 Purchase orders 358 179 20 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $320, 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 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $200 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 7 Exercise 17-8 Using departmental overhead rates to assess prices LO P2 0.35 points Way Cool produces two different models of air 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 associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Quantity 730 7,730 40 eBook Hint Finishing Welding Inspecting Rework Overhead Cost Driver $ 458,000 Number of batches 310,000 Machine hours 226,000 Number of setups $ 994,000 $ 182,000 Welding hours 229,000 Number of inspections 64,000 Rework orders $ 475,000 $ 143,000 Purchase orders 30, 500 Number of units 63,000 Number of units $ 236,500 5,600 820 270 Support Ask Purchasing Providing space Providing utilities 537 4,600 4,600 Print Additional production information concerning its two product lines follows. RE References Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 2,200 365 470 2,450 20 150 358 Model 212 3, 100 3,400 365 350 5, 280 20 120 179 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $320, 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 If the market price for Model 145 is $1,925 and the market price for Model 212 is $320, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit