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

Please answer the following question

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 Overhead Cost Driver Quantity
Components Changeover $ 456,500 Number of batches 910
Machining 301,200 Machine hours 7,720
Setups 226,500 Number of setups 180
$ 984,200
Finishing Welding $ 182,800 Welding hours 4,700
Inspecting 227,000 Number of inspections 825
Rework 61,450 Rework orders 190
$ 471,250
Support Purchasing $ 135,000 Purchase orders 518
Providing space 30,100 Number of units 5,100
Providing utilities 60,950 Number of units 5,100
$ 226,050

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 1,700 3,400
Welding hours 1,800 2,900
Batches 455 455
Number of inspections 475 350
Machine hours 2,320 5,400
Setups 90 90
Rework orders 80 110
Purchase orders 345 173

image text in transcribedOptions for 1st left column

  • Direct labor costs
  • Direct labor hours
  • Direct materials
  • Machine hours
  • Number of setups
  • Overhead costs

image text in transcribed

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 $230 for Model 145 and $180 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $735 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

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