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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. Overhead Cost Quantity Components Changeover 454,000 Number of batches Machining 308,000 Machine hours 8,090 Setups 230,000 Number of setups 140 1,002,000 Finishing Welding 190,000 Welding hours 5,000 pecting 221,000 Number of inspections Rework 63,000 Rework orders 474,000 Support Purchasing 141,000 Purchase orders 471 Providing space 32,000 Number of units 4,970 Providing utilities 68,000 Number of units 4,970 s 241,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1.900 3,070 3,600 Welding hours 1.400 Batches Number of inspections Machine hours 2,760 5,340 Setups Rework orders 140 Purchase orders 314 157 Required 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places. Answer is not complete Components department Overhead costs per machine hour Machine hours Finishing department Overhead costs per welding hour welding hours Support department Overhead costs per purchase order Number of purchase orders Activity Driver Departmental Model 145 Components Finishing Support
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