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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 Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 850 7,930 200 Finishing Welding Inspecting Rework Overhead Cost $ 497,250 366,366 370,000 $1,233,616 $ 382,470 318,500 35,700 $ 736,670 155,550 30,600 136,800 $ 322,950 Welding hours Number of inspections Rework orders 6,100 910 170 aces Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 510 9,000 9,000 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 3.000 2,600 425 500 2,650 100 130 340 Model 212 6,000 3,500 425 410 5.280 100 40 170 Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 1 Activity driver incurred Expooted Costa Expected Activity ok Int $ 497,250 366,366 370,000 850 Number of batches 7,930 Machine hours 200 Setups rences Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 382470 318,500 35,700 6,100 Welding hours 910 Inspections 170 Rework orders $ 155,550 167400 510 Purchase orders 9,000 Units Total overhead cost Total units produced Overhead cost per unit Regard Required 2 > per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ces Model 145 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $117 for Model 212. (Round your final answers to 2 decimal places.) Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 aces If the market price for Model 145 is $550.84 and the market price for Model 212 is $319.40, determine the profit or loss per unit for each model. (Round your Anal answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Prolit (loss) per unit
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