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Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with
Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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 Components Changeover Activity Overhead Cost Driver Quantity 730 8,330 160 $ 448,950Number of batches Machining Setups 380,681 290,400 $1,120,031 Machine hours Number of setups Finishing Welding $ 364,140 Welding hours Inspecting Rework 6,300 815 130 285,250 Number of inspections 29,900 Rework orders $ 679,290 Purchasing Providing space Providing utilities $ 213,720 Purchase orders Number of units Number of units Support 30, 300 48,660 $ 292,680 548 4,200 4, 200
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