Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Save Submit 3 Check my work 10 pourta Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its

image text in transcribed
image text in transcribed
Save Submit 3 Check my work 10 pourta 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 Process Activity Overhead Cost Driver Quantity Components Changeover $ 476,000 Number of batches 772 Machining 304,000 Machine hours 8,360 Setups 228.000 Nuber of setups 160 $1.000.000 Finishing Welding $ 190,00 Welding hours 5.500 Inspecting 222.000 Number of inspections 835 Rework 63,500 Rework orders 260 5 475,50 Support Purchasing $ 135,000 Purchase orders 561 Providing space 33,000 Number of units 4.990 Providing utilities 54.ee Number of units 4,990 $ 232.000 Additional production intomation concerning its two product lines follows Model 145 Modet 212 Units produced 1,900 Welding hours 3,690 1.800 3,700 Batches 385 Number of inspections 385 ses 330 Machine hours 3,650 Setups BB 30 Rework orders 150 110 Purchase orders 374 187 5.310 M Additional production information concerning its two product lines follows. Model 212 3,090 3.700 385 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,800 385 ses 3,050 80 150 374 330 BOON 5,310 80 110 187 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 $120 for Model 212 3. If the market price for Model 145 is $1925 and the market price for Model 212 is $310. 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 Hartant en than nonartment had more Avere un intermediate Save Submit 3 Check my work 10 pourta 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 Process Activity Overhead Cost Driver Quantity Components Changeover $ 476,000 Number of batches 772 Machining 304,000 Machine hours 8,360 Setups 228.000 Nuber of setups 160 $1.000.000 Finishing Welding $ 190,00 Welding hours 5.500 Inspecting 222.000 Number of inspections 835 Rework 63,500 Rework orders 260 5 475,50 Support Purchasing $ 135,000 Purchase orders 561 Providing space 33,000 Number of units 4.990 Providing utilities 54.ee Number of units 4,990 $ 232.000 Additional production intomation concerning its two product lines follows Model 145 Modet 212 Units produced 1,900 Welding hours 3,690 1.800 3,700 Batches 385 Number of inspections 385 ses 330 Machine hours 3,650 Setups BB 30 Rework orders 150 110 Purchase orders 374 187 5.310 M Additional production information concerning its two product lines follows. Model 212 3,090 3.700 385 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,800 385 ses 3,050 80 150 374 330 BOON 5,310 80 110 187 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 $120 for Model 212 3. If the market price for Model 145 is $1925 and the market price for Model 212 is $310. 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 Hartant en than nonartment had more Avere un intermediate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

10th Edition

1119491630, 978-1119491637, 978-0470534793

More Books

Students also viewed these Accounting questions

Question

Understand the role of employer branding in talent management.

Answered: 1 week ago