Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saved Help Save & Exit Sub Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department.

image text in transcribed
image text in transcribed
image text in transcribed
Saved Help Save & Exit Sub Way 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 (loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Overhead Cost Driver Quantity Components Changeover $ 458,000 Number of batches 750 Machining 302,000 Machine hours 7,680 Setups 229,080 Number of setups 60 $ 989,000 Finishing Welding $ 182,400 Welding hours 4,700 Inspecting 232,000 Number of inspections 785 Rework 60, 700 Rework orders 220 $ 475, 100 Support Purchasing $ 137, eee Purchase orders 488 Providing space 30,750 Number of units 6, see Providing utilities 60,53e Number of units 6,300 $ 228,280 Additional production information concerning its two product lines follows. Model 145 2,180 1.800 Model 212 4,200 2.900 Units produced Weldine hours Help Say 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 2,100 1,800 375 475 2,280 Model 212 4,280 2,900 375 310 5,400 30 70 163 150 325 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $190 for Model 145 and $210 for Model 212. OH Cost per Activity Driver Overhead Assigned Units Produced Plantwide OH rate Total Overhead Cost unit 15 Sa 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 $210 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $744 and the market price for Model 212 is $510, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions