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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

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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 the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Round OH rate, cost per unit and dollar amounts answers to 2 decimal places.) Process Activity Overhead Cost Driver Components Changeover Quantity $451,000 Number of batches 930 Machining 300,800 Machine hours 7,720 Setups 228,500 Number of setups 160 $988,300 Finishing Welding $181,500 Welding hours 5.000 Inspecting 225,000 Number of inspections 765 Rework 62,000 Rework orders 130 $468,500 Support Purchasing $135,500 Purchase orders 555 Providing space 31,550 Number of units 5,700 Providing utilities 68,290 Number of units 5,700 $227,348 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 1,900 2,000 465 490 2,270 80 80 378 Model 212 3,800 3,000 465 275 5,450 80 50 185 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for oach product line Prev 1 of 4 !!! Next >

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