Question
Process Activity Components Changeover Number of batches Machining Setups Number of setups Way Cool produces two different models of air conditioners. The company produces
Process Activity Components Changeover Number of batches Machining Setups Number of setups 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. Overhead Cost Driver $ 452,888 312,000 225,000 Machine hours Quantity 778 7,848 200 $ 989,800 Finishing Welding $ 184,800 Welding hours 5,900 Inspecting Rework 225,000 Number of inspections 905 63,500 Rework orders 188 472,500 Support Purchasing $ 130,000 Purchase orders 555 Providing space Providing utilities 37,500 62,000 $238,500 Number of units 4,988 Number of units 4,988 Additional production Information concerning its two product lines follows. Model 212 Model 145 Units produced 1,500 3,088 Welding hours 2,200 3,700 Batches 385 385 Number of inspections 495 418 Machine hours 2,558 5,290 Setups 188 188 Rework orders Purchase orders 88 378 188 185 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 if the direct labor and direct materials costs per unit are $190 for Model 145 and $190 for Model 212 3. If the market price for Model 145 is $900 and the market price for Model 212 is $260, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Components department Finishing department Support department Model 146 Components Finishing Support o Activity Driver Departmental OH Rate Total Overhead Cost $ 0 $ 0 Model 212 Components Activity Driver Departmental OH Rate Total Overhead Cost $ $ 0 0 Finishing Support < Required 1 Required 2 > Show less
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