Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all 3 steps Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The

Please answer all 3 steps

image text in transcribedimage text in transcribed
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 nishing 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 S 573,550 Number of batches 370 Machining 394,155 Machine hours 3,550 Setups 405,900 Number of setups 220 $1,373,605 Finishing Welding S 280,370 Welding hours 5,300 Inspecting 369,325 Number of inspections 935 Rework 73,000 Rework orders 260 $ 727,695 Support Purchasing S 151,140 Purchase orders 458 Providing space 31,900 Number of units 7,200 Providing utilities 101,300 Number of units 7,200 $ 284,340 r Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,400 4,800 Welding hours 1,600 3,700 Batches 435 435 Number of inspections 525 410 Machine hours 3,250 5,300 Setups 110 110 Rework orders 150 110 Purchase orders 305 153 ' 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 $200 for Model 145 and $119 for Model 212. 3. lfthe market price for Model 145 is $668.96 and the market price for Model 212 is $333.36, determine the prot 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 Model 212 Activity Expected Overhead Costs Expected Activity Activity Rate Activity driver Overhead Activity driver incurred assigned incurred assigned Components Changeover $ 578,550 870 Number of batches Machining 394, 155 8,550 Machine hours Setups 405,900 220 Setups Finishing Welding $ 280,370 5,300 Welding hours Inspecting 369,325 935 Inspections Rework 78,000 260 Rework orders Support Purchasing $ 151, 140 458 Purchase orders Providing space and utilities 133,200 7,200 Units Total overhead cost Total units produced Overhead cost per unit

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

Psychology Applied To Teaching

Authors: Jack Snowman, Rick McCown

14th Edition

1285734556, 9781285734552

More Books

Students also viewed these Accounting questions

Question

Analyze accounts receivable and allowance for doubtful accounts

Answered: 1 week ago

Question

8. What values do you want others to associate you with?

Answered: 1 week ago