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 their components department. The mechanical systems are combined with

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. Activity Components Changeover Machining Setups Overhead Cost $ 462,eee 306,000 235,000 $1,003,eee Driver Number of batches Machine hours Number of setups ts Process Quantity 890 8,190 eBook 80 Hint Finishing Welding Inspecting Rework $ 190,000 225,000 65,000 Welding hours Number of inspections Rework orders 6,000 Print 905 eferences 230 480,000 $ Purchasing Providing space Support 135,000 Purchase orders 489 38,500 Number of units 5,250 Providing utilities 70,000 Number of units 5,250 $ 243,500 Additional production information concerning its two product lines follows Model 145 Model 212 Prev 3 of 5 Next> cetios here to search oblems Saved Model 145 Model 212 Units produced Welding hours Batches 2,200 2,000 445 3,050 4,000 445 Number of inspections 495 410 Machine hours 2,850 5,340 Setups Rework orders Purchase orders 40 40 120 110 326 163 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your ov assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finis department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 and $140 for Model 212 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $300, determine the profit or loss p model. ces Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prev 3 of 5 Next> re to search Components department Finishing department Support department Departmental OH Rate Activity Driver Total Overhead Cost Model 145 Components Finishing Support to search hp 144 # $ 4 % 5 & 7 6 LC Departmental OH Rate Activity Driver Total Overhead Cost Model 212 Components Finishing Support Required 2 ere to search Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $1,925 and the market price for Model 212 is $300, determine the prof for each model. (Loss amounts should be indicated with a minus sign. Round your interrnediate calculations to 2 decimal places.) look int nt Model 145 Model 212 ences Market price per unit Cost per unit Profit (loss) per unit Required 2

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

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions