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Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the
Exercise 17-8 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 Quantity 870 7,720 40 Finishing Welding Inspecting Rework Overhead Cost Driver $ 458,500 Number of batches 301,400 Machine hours 226,000 Number of setups $ 985,900 $ 182,400 Welding hours 233,000 Number of inspections 61,050 Rework orders $ 476,450 $ 136,500 Purchase orders 31,500 Number of units 60,410 Number of units $ 228, 410 4,200 725 180 Support Purchasing Providing space Providing utilities 570 5,700 5,700 Additional production information concerning its two product lines follows. Model 145 1,900 Model 212 3,800 Units produced Additional production information concerning its two product lines follows. Model 145 1.900 1.800 Units produced Welding hours Batches Sumber of spection Machine hours Setup Revork ordere Purchase order 465 2.320 20 120 300 Model 212 3,800 2.400 05 260 5.400 20 60 110 Required 1. Using plantide verhead rate based on machine hours, compute the overhead cost per unit for each product line 2. Determine the total cost per unit for each product line of the direct labor and direct mature contre $220 for Model 145 and 1125 for Model 212 Total Overhead Cost Activity Dotyw Plantwide Out rate Units Produced CH Cost per un Overhead Ausled Model 145 Modul 212 Activity Driver Plantwade OH rate Total Overhead Cost Units Produced OH Coat per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 1. If the market price for Model 145 is 5754 and the matet price for Model 212 5450, determine the profit or loss per unit for each model Model 145 Model 212 Market price
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