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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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 750 7,630 160 Finishing Welding Inspecting Rework Overhead Cost $ 459,000 301,800 227,500 $ 988,300 $ 181,200 225,000 61,650 $ 467,850 $ 136,500 31,000 60, 340 $ 227,840 Welding hours Number of inspections Rework orders 3,800 810 240 Support 525 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 5,700 5,700 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 1,980 1,600 375 510 2,330 80 130 350 Model 212 3,800 2,200 375 300 5,300 88 110 175 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $220 for Model 145 and $160 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $752 and the market price for Model 212 is $430, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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