Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 Components Changeover Machining Setupa Quantity 890 7,590 100 Finishing Welding Inspecting Rework Overhead Cost Driver $ 451,000 Number of batches 300,200 Machine hours 227,500 Number of setups $978,700 $ 181,300 Welding hours 225,000 Number of inspections 60, 150 Rework orders $ 466,450 $ 137,500 Purchase orders 31,200 Number of unita 60,500 Number of units $ 229,200 4.300 795 170 Support Purchasing Providing space Providing utilities 540 4,800 4,800 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 1,600 1,000 445 515 2,290 50 100 360 Model 212 3,200 3,300 445 280 5,300 50 70 180 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 $300 for Model 145 and $170 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Overhead Assigned Model 145 Model 212 Units Produced OH Cost per unit Model 145 Model 212 3. If the market price for Model 145 is $750 and the market price for Model 212 is $450, 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 to Expert-Tailored 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

Recommended Textbook for

Auditing Theory And Practice

Authors: Roger H. Hermanson

1st Edition

0256023301, 978-0256023305

More Books

Students also viewed these Accounting questions

Question

What investigation does an auditor make of deviations?

Answered: 1 week ago