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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
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. Process Activity Components Changeover Machining Setups Quantity 910 8, 430 Finishing Welding Inspecting Rework Overhead Cost Driver $ 470,000 Number of batches 302,000 Machine hours 227,000 Number of setups $ 999,000 $ 190,000 Welding hours 221,000 Number of inspections 64,000 Rework orders $ 475,000 $ 139,000 Purchase orders 32,000 Number of units 68,000 Number of units $ 239,000 5,800 920 230 Support 513 Purchasing Providing space Providing utilities 5,180 5,180 Additional production information concerning its two product lines follows. Model 212 3,080 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,100 1,800 455 510 3,150 10 120 342 455 410 5,280 10 110 171 Required: 1. Determine departmental overhead rates and compute the overheed cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department Assign costs to the support department based on number of purchase orders 2. Determine the total cost per unit for each product line the rest labor and direct materials costs per unitare $250 for Model 145 and $200'or Model 212 3. the market price for Model 145 is $875 and the market price for Model 212 $250, determine the profit or loss per unt for each model. department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department ActivityDepartmentatal Model 145 OH Overhead Driver Rate Cost Components Finishing Support Cost Activit Departmentatal Model 212 OH Overhead Driver Rate Components Finishing Support Remuner Required 2 >
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