Exercise 17-9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs drivers associated with these two manufacturing processes and the production support process The company produces the mechanical systems in their components follow ProcessActivity Components Changeover Machining Overhead Cost Driver 422,650 Number of batches 67,0 Machine hours 329,400 Number of setups $1,119,120 Quantity 790 7,810 180 Setups 234,800 Welding hours 297,475 Number of inspections 66,150 Rework orders 4,000 815 270 Finishing Welding Inspecting Rework 598,425 465 s 183,675 Purchase orders 31,400 Number of units Support Purchasing 8 5,700 Providing space Providing utilities Number of units 5,7e0 77,470 $ 292,545 Exercise 17-9 Using ABC to assess prices LO P3 ay 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 rs associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Overhead Cost Driver 422,650 Number of batches 367,070 Machine hours 329,400 Number of setups $1,119,120 Quantity 790 7,810 Setups 180 Finishing Welding Inspecting Rework s234,800 Welding hours 297,475 Number of inspections 66,150 Rework orders 598,425 4,000 815 Support Purchasing Providing space Providing utilities $ 183,675 Purchase orders 31,400 Number of units 465 5,700 77,470 Number of units 5,700 292,545 Exercise 17-9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs drivers associated with these two manufacturing processes and the production support process The company produces the mechanical systems in their components follow ProcessActivity Components Changeover Machining Overhead Cost Driver 422,650 Number of batches 67,0 Machine hours 329,400 Number of setups $1,119,120 Quantity 790 7,810 180 Setups 234,800 Welding hours 297,475 Number of inspections 66,150 Rework orders 4,000 815 270 Finishing Welding Inspecting Rework 598,425 465 s 183,675 Purchase orders 31,400 Number of units Support Purchasing 8 5,700 Providing space Providing utilities Number of units 5,7e0 77,470 $ 292,545 Exercise 17-9 Using ABC to assess prices LO P3 ay 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 rs associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Overhead Cost Driver 422,650 Number of batches 367,070 Machine hours 329,400 Number of setups $1,119,120 Quantity 790 7,810 Setups 180 Finishing Welding Inspecting Rework s234,800 Welding hours 297,475 Number of inspections 66,150 Rework orders 598,425 4,000 815 Support Purchasing Providing space Providing utilities $ 183,675 Purchase orders 31,400 Number of units 465 5,700 77,470 Number of units 5,700 292,545
