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 transcribedimage text in transcribedimage text in transcribedimage 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 sctivities, costs, and drivers associsted with these two manufacturing processes and the production support process follow. Activity Quantity 5 529. 550 B.0s0 Setupa 1.247.280 5 340.4BD Walding houea 5. EO0 315, 950bar ef inapectiona 280 5 722.230 Suppozt Fchaaing of unita Providing tiiitiaa 5.400 5 270.700 Additional production information concerning its two product lines follows. Model 145 Nodal 212 Unita producad malding housi 1.800 1.800 tohaa Machine houra S.340 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit sre $240 for Model 145 and $118 for Model 212 3. If the market price for Model 145 is $813.24 and the market price for Model 212 is $454.44, determine the profit or loss per unit for each model Using ABC, compute the overhend cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Model 212 Activity driver Overhead Activity driver Overhead Expected Costs Expected Activity Activity Rate 290 Number of batones 380 230 3.090 Machine hours 3etups 337 500 180 3etUDE Finlshing Welding nspecting Rework 340.480 315950 65,800 5600 Welding hours 290 inepections 280 Rework orders Support 170,800 483 Purohase orders Providing space and utiries 9.900 5.400 Unts Total overnead co8 Total units produced Overnead oost per unit Determine the total cost per unit for each product line if the direct labor and direct msterials costs per unit are $240 for Model 145nd S 118 for Model 212. (Round yur final srswers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Ovemead cost per unt Total cost per unt If the arket price for Model 145 is $813.24 nd the m srket price for Model 212 is $454.44, determine the profit or loss per unit for each model. (Rund y ur renal snsvers to 2 decmal places.) Model 145 Model 212 Price per unt Cost per unit Profi (oss) per unit

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

Making Accountability Work Dilemmas For Evaluation And For Audit

Authors: Marie-Louise Bemelmans-Videc, Jeremy Lonsdale, Burt Perrin

1st Edition

1412865557, 978-1412865555

More Books

Students also viewed these Accounting questions

Question

What services are provided by the SSL Record Protocol?

Answered: 1 week ago