Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

omheducation.com/ext/map/index.html?_con-con&external browser=0&launchUrl=https%253A%252F%252Felearning ketes.edu%252Fwebapps%252Fblackboard%252Fexecutele 4 Homework Saved Help Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
omheducation.com/ext/map/index.html?_con-con&external browser=0&launchUrl=https%253A%252F%252Felearning ketes.edu%252Fwebapps%252Fblackboard%252Fexecutele 4 Homework Saved Help 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 Overhead Cost Driver Quantity Components Changeover $ 478,000 Number of batches 770 Machining 301,000 Machine hours 8.240 Setups 233,000 Number of setups 60 $1,012,600 Finishing Welding $ 186,000 Welding hours Inspecting 229,000 Number of inspections Rework 62,500 Rework orders 200 $ 477,500 Support Purchasing $ 145,000 Purchase orders 507 Providing space 31,000 Number of units 5,010 Providing utilities 62,000 Number of units 5,010 $ 238,000 4,100 855 Additional production Information concerning its two product lines follows. Model 212 3, 110 2,900 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,200 385 465 2,954 30 150 338 390 5,290 30 50 169 Required: 100 ere to search O c O Additional production Information concerning its two product lines follows. Units produced Welding hours Batches Numb of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,200 385 465 2,950 3e 150 338 Model 212 3,119 2,900 385 390 5,290 30 50 169 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $230 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1.025 and the market price for Model 212 is $310, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Renuired Recured? Renuired 3 H search O TI C omework Saved Components department of Finishing department Support department ces Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support S 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost 0 Components Finishing Support s 0 0 Materials and Labor per unit Overhead cost per unit Total cost per unit 7 of 8 100 ere to search O c O Additional production Information concerning its two product lines follows. Units produced Welding hours Batches Numb of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,200 385 465 2,950 3e 150 338 Model 212 3,119 2,900 385 390 5,290 30 50 169 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $230 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1.025 and the market price for Model 212 is $310, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Renuired Recured? Renuired 3 H search O TI C omework Saved Components department of Finishing department Support department ces Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support S 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost 0 Components Finishing Support s 0 0 Materials and Labor per unit Overhead cost per unit Total cost per unit 7 of 8

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

Modern Auditing

Authors: William C Boynton, Raymond N Johnson

8th Edition

0471230111, 978-0471230113

More Books

Students also viewed these Accounting questions

Question

In your opinion, how will HR change in the future? Why?

Answered: 1 week ago