Exercise 17-9 Using departmental overhead rates to assess prices LO P2 77e 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 Overhead Cost Driver Quantity Components Changeover $ 470,000 Number of batches Machining 302,000 Machine hours 7,7ee Setups 231,000 Number of setups 120 $1,e23,000 Finishing Welding $ 188,000 Welding hours 5,300 Inspecting 222,000 Number of inspections 890 Rework 61,500 Rework orders 140 $ 471,500 Support Purchasing $ 147,000 Purchase orders 561 Providing space 32,500 Number of units 4,810 Providing utilities 69,000 Number of units 4,810 $ 248,500 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 1.800 1, see 385 500 2.350 60 BB 374 Model 212 3,01e 3,500 385 390 5,350 60 be 187 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 A. Prey 5 of 7 Next 4,810 $ 248,500 Additional production information concerning its two product lines follows. Model 212 3,010 3,588 385 Model 145 1,800 1,800 385 see 2,350 60 se 374 Units produced Welding hours Batches Number of Inspections Machine hours Setups Rework orders Purchase orders 390 5,350 60 be 187 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 $250 for Model 145 and $170 for Model 212. 3. If the market price for Model 145 is $1.250 and the market price for Model 212 is $270, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 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. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cont Components Finishing Support ces Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Required 2 > 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 $250 for Model 145 and $170 for Model 212. 3. If the market price for Model 145 is $1,250 and the market price for Model 212 is $270, 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 $250 for Model 145 and $170 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 Ps 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 $250 for Mod- and $170 for Model 212. 3. If the market price for Model 145 is $1,250 and the market price for Model 212 is $270, determine the profit or loss per unit fo 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 $1,250 and the market price for Model 212 is $270, 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 Ps
