Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 7,880 60 Finishing Welding Inspecting Rework Overhead Cost $ 569,850 361,692 113,100 $1,044,642 $ 308,660 352,950 55,650 $ 717,260 $ 205, 350 31,900 62,450 $ 299,700 Welding hours Number of inspections Rework orders 6,100 905 210 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 555 5,100 5, 100 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 2,400 435 515 2,550 30 100 370 Model 212 3,400 3,700 435 390 5,330 30 110 185 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 are $180 for Model 145 and $117 for Model 212. 3. If the market price for Model 145 is $754.43 and the market price for Model 212 is $436.82, determine the profit or loss per unit for each model. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate Activity d incurre 569,850 870 Number of batches Components Changeover Machining Setups Finishing Welding Inspecting 361,692 113,100 7,880 Machine hours 60 Setups 308,660 352,950 6,100 Welding hours 905 Inspections 210 Rework orders Rework 55,650 Support Purchasing Providing space and utilities $ 205,350 555 Purchase orders 94,350 5,100 Units Total overhead cost $ 0 Total units produced Overhead cost per unit Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Rate Total overhead cost EA 0 0 Total units produced Overhead cost per unit 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 are $180 for Model 145 and $117 for Model 212. 3. If the market price for Model 145 is $754.43 and the market price for Model 212 is $436.82, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $180 for Model 145 and $117 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 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 are $180 for Model 145 and $117 for Model 212. 3. If the market price for Model 145 is $754.43 and the market price for Model 212 is $436.82, determine the profit or loss per unit for each model. 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 $754.43 and the market price for Model 212 is $436.82, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
