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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. (Round OH rate, cost per unit and dollar amounts answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Quantity 930 7,720 160 Tinishing Welding Inspecting Rework Overhead Cost Driver $451,000 Number of batchen 300,800 Machine hours 220.500 Hamber of setup $980,300 $181,500 Wolding hours 225,000 Number of Inspections 62,000 Rework orders $460.500 $135,500 Purchase orders 31,550 Number of units 60,290 Number of units 0227,340 5,000 765 130 Support Purchasing Providing space Providing utilities 5,700 5,700 Additional production Information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setup Rework orders Purchase orders Model 145 1.900 2,000 465 490 2,270 80 30 370 Model 212 3,800 3,000 465 275 5,450 BO 50 185
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