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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
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 Process Components Changeover Activity Overhead Cost Driver Quantity 710 8,470 120 $ 415,350 Number of batches Machining Setups 386,232 218,400 Machine hours Number of setups $1,019,982 4,600 905 250 FinishingWelding $ 286,580 Welding hours 280,550 Number of inspections Inspecting Rework 51,250 Rework orders $ 618,380 Purchasing 533 6,900 6,900 Support $ Providing space Providin 207,870 31,200 99,210 Purchase orders Number of units Number of units ding utilities $ 338,280 Additional production information concerning its two product lines follows
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