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Looking for a solution to this question Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components
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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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 8,020 40 Finishing Welding Inspecting Rework Overhead Cost $ 405,150 370,524 74,800 $ 850, 474 $ 328,070 327,850 76,850 $ 732,770 $ 144,150 30, 300 59,460 $ 233,910 Welding hours Number of inspections Rework orders 5,300 830 290 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 465 4.800 4,800 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 1,600 1,200 365 470 2,750 20 170 310 Model 212 3,200 4,100 365 360 5,270 20 120 155 Required: Required: 1. Using ABC, 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 $210 for Model 145 and $118 for Model 212. 3. If the market price for Model 145 is $709.41 and the market price for Model 212 is $436.89, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate Activity di incurre $ 730 Number of batches $ 555.00 per batch 365 $ 405,150 370,524 74,800 202,575 243,474 $ 5,270 8,020 Machine hours 40 Setups 46.20 per machine hour 1,870.00 per setup $ 20 37,400 Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 4,100 328,070 327,850 76,850 5,300 Welding hours 830 Inspections 290 Rework orders 61.90 per welding hour 395.00 per inspection 265.00 per rework order 253,790 142,200 360 120 31,800 $ $ 144,150 89,760 465 Purchase orders 4,800 Units 310.00 per purchase order 6.31 per unit 155 3,200 48,050 20,192 $ Total acadrant n 104 1 Check my work lestion by entering your answers in the tabs below. Tired 2 Required 3 2 the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate $ S 365 $ 405,150 370,524 730 Number of batches 8,020 Machine hours $ 555.00 per batch 46.20 per machine hour 1,870.00 per setup 5,270 202,575 243,474 37,400 74,800 40 Setups $ 20 $ 328,070 327,850 76,850 5,300 Welding hours 830 Inspections 290 Rework orders $ $ $ 61.90 per welding hour 395.00 per inspection 265.00 per rework order 4,100 360 120 253,790 142,200 31,800 $ $ 144,150 89,760 465 Purchase orders 4,800 Units 155 3,200 utilities $ 310.00 per purchase order 6.31 per unit Total overhead cost Total units produced Overhead cost per unit $ 48,050 20,192 979,481 3,200 318.48 $ 0 3,200 $ $ 318.48Step by Step Solution
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