Exercise 17-9 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 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 Components Changeover Driver Quantity $ 458,000 Number of batches 750 Machining 308, eee Machine hours 8,080 Setups 238.000 Number of setups 40 $996.ee Finishing Welding $ 182,000 Welding hours 6,400 Inspecting 234,000 Number of inspections Rework 62, eee Rework orders 180 $ 478,000 Support Purchasing $ 137,eee Purchase orders 543 Providing space 35,500 Number of units 4.580 Providing utilities 64.ee Number of units 4.589 5 236,5ee Bas 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 1,500 2,400 375 475 2,750 20 120 362 Model 212 3,80 4,000 375 33e 5,330 2e be 181 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 ore $260 for Model 145 and $130 for Model 212 3. If the market price for Model 145 is $1,250 and the market price for Model 212 is $320, determine the profit or loss per unit for each model uTube Google Drive ternal browser claunchurl=https%253A252F%252Fims.meducation.com 252Fmgmidd to https://tu blackbo1331, section 022, F_ coms textbook Gmail stats tuma 17. Homework 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 OOK Finishing department Support department ces Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Requited 1 Required 2 > 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 $260 for Model 145 and $130 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 ntering your answers in the tabs below. eferences Required 1 Required 2 Required 3 If the market price for Model 145Js $1,250 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
