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ucation.com/ext/ma mework Saved Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical
ucation.com/ext/ma mework Saved 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 Components Changeover Machining Setups Finishing Welding Overhead Cost $ 476,000 302,000 225,000 Driver Quantity Number of batches 910 Machine hours 7,810 Number of setups 140 $1,003,000 $ 184,000 Welding hours 4,400 Inspecting. 222,000 Number of inspections. 830 Rework 62,000 Rework orders 190 $ 468,000 Support Purchasing $ 135,000 Purchase orders 507 Providing space. 36,000 Number of units 4,980 Providing utilities 70,000 Number of units 4,980 $ 241,000 Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced 1,900 3,080 Welding hours 1,200 3,200 Batches 455 455 Number of inspections: 450 340 Machine hours 2,450 5,500 Setups 20 76 Rework orders 90 100 338 169 Purchase orders Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead Next >>
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