Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls make answers visible Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
pls make answers visible
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 Components Changeover Quantity $ 561,150 Number of batches 870 Machining 366,858 Machine hours 8,010 Setups 190, eee Number of setups 100 $1,118,888 Finishing Welding $ 436,800 Welding fours 6,5ee Inspecting 253,150 Number of inspections Rework 50,15e Rework orders $ 740,100 Support Purchasing $ 170,940 Purchase orders 518 Providing space 31,6ee Number of units 5,400 Providing utilities 72,620 Number of units 5,400 $ 275,160 830 170 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 1,800 2,400 435 470 2,650 se 90 345 Model 212 3,600 4,100 435 360 5,36e Se 80 173 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 $180 for Model 145 and $115 for Model 212 3. If the market price for Model 145 is $723.18 and the market price for Model 212 is $43671, determine the profit or loss per unit for each model C 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.) Expected Costs Expected Activity Activity Rate $ 561,150 366,858 190,000 Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing 870 Number of batches 8,010 Machine hours 100 Setups $ $ 645.00 per batch 45.80 per machine hour 1,900.00 per setup $ $ S 436,800 253,150 50.150 6,500 Wolding hours 830 Inspections 170 Rowork orders $ 67.20 per welding hour 305.00 per inspection 295.00 per rowork order $ $ 170,940 518 Purchase orders $ 330.00 por purchase order Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit 145 and $115 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit es Che Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requied 3 If the market price for Model 145 is $723.18 and the market price for Model 212 is $436.71, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) 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

Students also viewed these Accounting questions

Question

Are summer stipends available?

Answered: 1 week ago