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Please show calculations. Thank you! Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The
Please show calculations. Thank you!
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 Overhead Cost $ 458,500 301,600 227,500 $ 987,600 Driver Number of batches Machine hours Number of setups Quantity 730 7,710 80 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 3,900 790 200 $ 181,500 231,000 61,950 $ 474,450 $ 136,000 30, 200 60, 410 $ 226,610 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number units 458 4,800 4,800 Additional production information concerning its two product lines follows. Model 145 1,600 1,000 Model 212 3,200 2,900 365 275 275 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 365 515 2,310 40 110 305 5,400 40 90 153 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs per machine hour Machine hours 7,710 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $300 for Model 145 and $200 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 0 1,600 Model 145 Model 212 $ 0 3,200 Model 145 Model 212 0 3. If the market price for Model 145 is $740 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market priceStep by Step Solution
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