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HELP! Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined
HELP! 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.)
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 Components Changeover Machining Setups Quantity 890 7,620 120 Finishing Welding Inspecting Rework Overhead Cost Driver $ 459,500 Number of batches 301,000 Machine hours 227,000 Number of setups $ 987,500 $ 182,800 Welding hours 229,000 Number of inspections 61, 150 Rework orders $ 472,950 $ 135,000 Purchase orders 30, 650 Number of units 60, 700 Number of units $ 226, 350 2,900 865 200 Support Purchasing Providing space Providing utilities 495 5,700 5, 700 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Model 145 1,900 800 445 515 Model 212 3,800 2,100 445 350 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 1,900 800 445 515 2,270 60 100 330 Model 212 3,800 2,100 445 350 5, 350 60 100 165 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit 4 Model 145 Model 212 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 $ Model 145 Model 212 3. If the market price for Model 145 is $751 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 $ Model 145 Model 212 0 3. If the market price for Model 145 is $751 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market priceStep by Step Solution
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