Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homework SEN Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are

image text in transcribed
image text in transcribed
Homework SEN 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. (Logs 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 Deiver Number of batches Machine hours Number of setups Quantity 800 6,800 120 Finishing Welding Inspecting Rework Overhead cost $ 500,000 279.000 225,000 $1,004,000 $ 180, 200 210,000 75,000 5465,300 $135,000 32,000 65,000 232,000 Welding hours Number of inspections Rework orders 3,000 709 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5.000 5,000 Additional production Information concerning its two product lines follows. Model 145 1,500 800 4ee Model 212 3,500 2,200 400 4ee 100 Units produced Welding hours Batches Number of inspections Machine hours Se Rework orders Purchase orders 1,800 60 160 300 4.200 60 140 150 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 1,500 800 480 489 1,800 60 160 380 Model 212 3,50 2,200 400 3ee 4,200 60 140 150 Required: 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 $250 for Model 145 and $180 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per Model 145 unit Model 212 Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480. determine the profit or loss per unit for each model Model 145 Model 212 Market price

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

More Books

Students also viewed these Accounting questions

Question

Stages of a Relationship?

Answered: 1 week ago