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Process Driver Quantity Components Activity Changeover Machining Setups Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Number of batches Machine hours Number of setups 800 6,000
Process Driver Quantity Components Activity Changeover Machining Setups Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Number of batches Machine hours Number of setups 800 6,000 120 Finishing Welding Inspecting Rework $ 180,300 210,000 75,000 $ 465,300 Welding hours Number of inspections Rework orders 3,000 700 300 Support Purchasing Providing space Providing utilities $ 135,000 32.000 65,000 $ 232,000 Purchase orders Number of units Number of units 450 5,000 5.000 onal production information concerning its two product lines follows. Model 145 Units produced.. Welding hours.. Batches Number of inspections. Machine hours. Setups Rework orders Purchase orders. 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 Exercise 17-11 Using ABC to assess prices Refer to the information in Exercise 17-8 to answer the following requirements. P3 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 $250 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Check (3) Model 212 $34.88 per unit profit
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