Question
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
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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Overhead Cost Driver Quantity Components Changeover $ 450,500 Number of batches 870 Machining 301,800 Machine hours 7,700 Setups 226,500 Number of setups 180 $ 978,800 Finishing Welding $ 180,900 Welding hours 5,600 Inspecting 228,000 Number of inspections 770 Rework 61,400 Rework orders 200 $ 470,300 Support Purchasing $ 135,000 Purchase orders 548 Providing space 30,050 Number of units 5,100 Providing utilities 60,240 Number of units 5,100 $ 225,290 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,700 3,400 Welding hours 2,400 3,200 Batches 435 435 Number of inspections 500 270 Machine hours 2,300 5,400 Setups 90 90 Rework orders 110 90 Purchase orders 365 183
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