Exercise 4-7 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 their 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	Overhead Cost	Driver	Quantity
Components	Changeover		$	456,500		Number of batches	870
	Machining			301,000		Machine hours	7,680
	Setups			228,500		Number of setups	120
			$	986,000
Finishing	Welding		$	181,800		Welding hours	4,900
	Inspecting			227,000		Number of inspections	770
	Rework			60,650		Rework orders	230
			$	469,450
Support	Purchasing		$	137,500		Purchase orders	518
	Providing space			32,050		Number of units	4,500
	Providing utilities			60,730		Number of units	4,500
			$	230,280

Additional production information concerning its two product lines follows.

	Model 145	Model 212
Units produced		1,500			3,000
Welding hours		2,600			2,300
Batches		435			435
Number of inspections		460			310
Machine hours		2,330			5,350
Setups		60			60
Rework orders		100			130
Purchase orders		345			173

Required:

rev: 11_25_2015_QC_CS-34047, 12_30_2015_QC_CS-37133, 01_04_2016_QC_CS-37133

References Expanded tableExercise 4-7 Using the plantwide overhead rate to assess prices LO P1