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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 combinec the
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combinec 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 Quantity 830 8,420 140 Overhead Cost Driver Machining Setups $ 452,350 387,320 Number of batches Machine hours Number of setups $1,100,070 5,300 915 180 Finishing Welding S 321,180 324,825 Welding hours Number of inspections Inspecting Rework 49,500 Rework orders S 695,505 177,375 31,000 473 8,100 8,100 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units $ $ 332,895 Additional production information concerning its two product lines follows. Model 212 5,400 3,100 415 390 5,270 70 80 158 Model 145 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,700 2,200 415 525 3,150 70 100 315
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