Saved Help Save & Exit Check Exercise 04-11 Using ABC to assess prices LO P3 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 $ 614,250 Number of batches 910 Machining 392, 311 Machine hours 8,510 Setups 111,300 Number of setups 60 $1,117,861 Finishing Welding 317, 470 Welding hours 5,300 Inspecting 317,850 Number of inspections 815 Rework 72,000 Rework orders 300 $ 707, 320 Support Purchasing 196,170 Purchase orders 503 Providing space 30, 200 Number of units 6,600 Providing utilities 97, 180 Number of units 6,600 $ 323, 550 $ $ Additional production information concerning its two product lines follows. Model 145 Model 212 Prev 1 of 1 Next $ 323,550 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 2, 200 1,400 455 475 3, 150 30 170 335 Model 212 4,400 3,900 455 340 5, 360 30 130 168 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 $121 for Model 212. 3. If the market price for Model 145 is $70110 and the market price for Model 212 is $384.52, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Prev 1 of 1 !!! Nex Saved Help Save & Exit Submit Check my work Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model to Activity driver incurred $ 614,250 392,311 111,300 910 Number of batches 8,510 Machine hours 60 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 317,470 317,850 72,000 5,300 Welding hours 815 Inspections 300 Rework orders $ 196,170 127,380 503 Purchase orders 6,600 Units Total overhead cost Total units produced Overhead cost per unit Required 2 > Prev 1 of 1 Next ne. (Round your final answers to 2 decimal places.) ed Activity Activity Rate Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned lumber of batches Tachine hours etups Welding hours nspections tework orders Purchase orders Units $ 0 Total overhead cost Total units produced Overhead cost per unit Required 2 Prev 1 of 1 PIE Next Saved He each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 $121 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Prey 1 of 1 !! Next each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $701.10 and the market price for Model 212 is $384.52, determine the profit or loss per unit for each model..(Round your final answers to 2 decimal places.). Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
