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Exercise 4.9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in

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Exercise 4.9 Using ABC to assess prices LO P3 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 Machining Setups 607,750 Nunber of batches 99,74 Machine hours 41 100umber of setupe 8,470 1,348,634 Tinishing Welding 302,820 Welding hours ,300 860 ces Inspectin Revork 331,100 umber of 6,050 Revork orders 5 689,970 Support Furchaning Providing space Providing utilities 5,160 unber of units 186,835 Prehase orders 30,900 Number of units 6,600 ,600 312,89 Additional production information conceming its two product ines follows

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