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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 Process Driver Quantity 890 8,270 Activity Cost Components Changeover $493,950 Number of batches Machining Setups 386,209 Machine hours 75,600 Number of setups 40 $955,759 Welding Inspectingg Rework Finishing 5,000 910 130 $285,000 Welding hours 36,700 Number of 37,700 Rework orders inspections $659,400 Purchasing Providing space $186,320 Purchase orders 31,000 Number of units 97,340 Number of units 548 6,900 6,900 Support Providing utilities $ 314,660Step by Step Solution
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