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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 Activity Components Changeover Machining Setups Quantity 810 7,560 140 Finishing Welding Inspecting Overhead Cost Driver $ 456,500 Number of batches 300,400 Machine hours 226,000 Number of setups $ 982,900 $ 182,700 Welding hours 228,000 Number of inspections 61,650 Rework orders $ 472,350 $ 136,000 Purchase orders 31,350 Number of units 60,030 Number of units $ 227,380 4,500 760 190 Rework Support Purchasing Providing space Providing utilities 518 5,400 5,400 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 1,800 2,000 405 485 2,260 70 110 345 Model 212 3,600 2,500 405 275 5,300 70 80 173 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 1.682.830 $ 222.57 per machine hour Machine hours 7.560 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $200 for Model 145 and $210 for Model 212. Overhead Assigned Model 145 Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 0 Model 212 s 0 Model 145 Model 212 0 3. If the market price for Model 145 is $736 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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