MARKET PRICE 760

Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 1,685,420 $ 224.13 Machine hours 7,520 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 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 2,270 $ 224.13 $ 508,775 2,100 242.27 $ $ Model 212 5,250 $ 224.13 $ 1,176,683 4,200 280.16 Model 145 Model 212 Total manufacturing cost per unit: Materials and Labor 242.27 280.16 Overhead Total manufacturing cost X 3. If the market price for Model 145 is $76 This is a numeric cell, so please enter numbers only. $470, determine the profit or loss per unit for each model. Model 212 Market price 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. (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 790 7,520 60 Finishing Welding Inspecting Rework Overhead Cost Driver $ 456,000 Number of batches 300,600 Machine hours 226,000 Number of setups $ 982,600 $ 180,400 Welding hours 231,000 Number of inspections 60, 900 Rework orders $ 472,300 $ 138,000 Purchase orders 32,350 Number of units 60,170 Number of units $ 230,520 4,500 815 220 Support Purchasing Providing space Providing utilities 480 6,300 6,300 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 2,100 2,000 395 475 2,270 30 170 320 Model 212 4,200 2,500 395 340 5,250 30 50 160