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v Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined
v 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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity Bes 6.000 120 Finishing Welding Inspecting Rework Overhead Cost $ 500,000 279.000 225,000 $1,004,900 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32,000 65.000 $ 232,000 Helding hours Number of Inspections Rework orders 3,000 700 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5,000 5,000 Additional production information concerning its two product lines follows 145 to 119 Support Purchasing Providing space Providing utilities $ 135,000 32,000 65,000 $ 232,800 Purchase orders Number of units Number of units 450 5,000 5,000 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 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 Required: Answer is complete but not entirely correct. 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 5 298 55 ner machine hour 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 1.791,300 * $ 298.55 per machine hour Machine hours 6,000 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 $180 for Model 212. Overhead Assigned OH Cost Activity Driver 1,800 4,200 Model 145 Model 212 Plantwide OH rate s 283.55 $ 283.55 Total Overhead Cost $ 510,390 1,190,910 per unit Units Produced 1,500 3,500 $ 340.26 340.26 $ $ Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost Model 145 250.00 340.26 590.26 Model 212 180.00 340.26 520.26 $ 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price 820.00 480.00 the work you have completed so fa erhead Assigned Model 145 Model 212 Activity Driver 1,800 4,200 Plantwide OH rate $ 283.55 283.55 Total Overhead Cost 510,390 1,190,910 Units Produced 1,500 3,500 OH Cost per unit IS 340.26 340.26 S al manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost Model 145 250.00 340.26 590.26 Model 212 180.00 340.26 520.26 $ the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit oss per unit for each model. Model 145 Model 212 Market price $ 820.00 $ 480.00 Manufacturing cost per unit (590.26) (520.26) Profit(loss) per unit 229.74 $ 40.26 $
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