Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 octivities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Additional production information conceming its two product lines follows. Anevekrnut: 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 weiding 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 $290 for Model 145 and $190 for Model 212. 3. If the market price for Model 145 is $1,625 and the market price for Model 212 is $290, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Determine departmental overhead rates and compute the overhead cost per unit for each prijduct 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.) \begin{tabular}{l} 1= \\ \hdashline= \\ = \end{tabular} model. Complete this question by entering your answers in the tabs below. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 and $190 for Model 212 . (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. If the market price for Model 145 is $1,625 and the market price for Model 212 is $290, 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Transaction Monitoring

Authors: Bob Walsh

1st Edition

1539519740, 978-1539519744

More Books

Students also viewed these Accounting questions

Question

Perform an Internet search. Discuss a company that uses EPLI.

Answered: 1 week ago

Question

How do you feel about employment-at-will policies? Are they fair?

Answered: 1 week ago