TYPED PLZ OR VERY NEAT HAND WRITING
Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 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. (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 Componenta Changeover $ 456,500 Number of batches 810 Machining 300,000 Machine hours 7,570 Setups 225.500 Number of setups 20 $982.800 Finishing Welding $ 181,500 Welding hours 4.800 Inspectie 229,000 Number of inspections 850 Rework 61,550 Rework orders 190 $ 472,050 Support Purchasing $ 136,500 Purchase orders 510 Providing space 30,150 Number of units 6,300 Troviding utilities 60.230 Number of units 6,300 $ 226,880 Additional production information concerning its two product lines follows. Model 212 Units produced Welding hours hatehes Number of inspections Machine hours Setups Revork orders Purchase orders Model 145 2.100 2.200 405 505 2.120 10 90 145 2,600 405 3:45 5.250 100 173 Required: 1. Using 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 andere materiale costs per unit are $10 for Model 145 and 5170 for Model 212 Overhead Assigned Activity Driver Pianwide on rate Total Overhead Cost Units Produced OM Cost per unit Model 145 Model 212 $ $ Model 145 Model 212 3. the market price for Model 145 is 1747 and the market price for Model 212 5510, determine for Model 145 Model 212 Market price