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 its components department. The mechanical systems are combined with

image text in transcribed
image text in transcribed
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 830 7,709 160 Finishing Welding Inspecting Rework Overhead Cost $ 452,000 301,800 226,500 $ 980,300 $ 180,200 227,000 60,300 $ 467,500 $ 135,500 30,150 60,690 $ 226,340 Welding hours Number of inspections Rework orders 3,100 725 170 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 495 6,000 6,000 Additional production information concerning its two product lines follows Model 212 4,900 Model 145 2,000 800 415 460 2,300 Units produced Welding hours Batches Tumber of inspections Machine hours 2,300 415 265 5,400 Rre 12617 Next 1. Using a planta de overhead rate based on machine hours, compute the overhead bost per un for each product line 0 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 $140 for Model 212 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 S 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $731 and the market price for Model 212 is $500, 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

The Lean Audit A Detailed User Guide For The Lean Factory Audit Online

Authors: Isaias Wallaker

1st Edition

B09R3HXJ11, 979-8408651320

More Books

Students also viewed these Accounting questions

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago