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 Overhead Cost Driver Components Changeover Machining Setups Finishing Welding $ 539,750 382,966 219,000 Number of batches Machine hours Number of setups Quantity 850 8,380 120 $1,141,716 $ 347,060 Welding hours 6,700 Inspecting 291,600 Number of inspections 810 Rework 42,750 Rework orders 150 $ 681,410 Support Purchasing $ 196,875 Providing space 30,500 Providing utilities 86,680 Purchase orders Number of units Number of units 525 6,300 6,300 $ 314,055 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 4,200 Welding hours 2,600 4,100 Batches 425 425 Number of inspections 490 320 Machine hours 3,050 5,330 Setups 60 60 Rework orders 70 80 Purchase orders 350 175 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 $190 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $676.33 and the market price for Model 212 is $380.30, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Activity Expected Costs Expected Activity Components Changeover $ 539,750 Machining 382,966 850 Number of batches 8,380 Machine hours Setups 219,000 120 Setups Finishing Welding $ 347,060 6,700 Welding hours Model 145 Activity Rate Activity driver incurred as 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 Overhead Cost Driver Components Changeover Machining Setups $ 539,750 382,966 219,000 $1,141,716 Number of batches Machine hours Number of setups Quantity 850 8,380 120 Finishing Welding $ 347,060 Welding hours 6,700 Inspecting Rework 291,600 42,750 Number of inspections 810 Rework orders 150 $ 681,410 Support Purchasing Providing space Providing utilities $ 196,875 Purchase orders 525 30,500 86,680 Number of units Number of units 6,300 6,300 $ 314,055 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 4,200 Welding hours 2,600 4,100 Batches 425 425 Number of inspections 490 320 Machine hours 3,050 5,330 Setups 60 60 Rework orders 70 80 Purchase orders 350 175 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 $190 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $676.33 and the market price for Model 212 is $380.30, 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 $190 for Model 145 and $114 for Model 212. (Round your final answers to 2 decimal places.) Materials and Labor per unit Overhead cost per unit Total cost per unit Model 145 Model 212 < Required 1 Required 3 > Driver 382,966 219,000 $1,141,716 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 Overhead Cost $ 539,750 Quantity 850 8,380 120 Number of batches Machine hours Number of setups Finishing Welding $ 347,060 Welding hours 6,700 Inspecting 291,600 Number of inspections 810 Rework 42,750 Rework orders 150 $ 681,410 Support Purchasing $ 196,875 Providing space Providing utilities 30,500 86,680 Purchase orders Number of units Number of units 525 6,300 6,300 $ 314,055 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 4,200 Welding hours 2,600 4,100 Batches 425 425 Number of inspections 490 320 Machine hours 3,050 5,330 Setups 60 60 Rework orders 70 80 Purchase orders 350 175 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 $190 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $676.33 and the market price for Model 212 is $380.30, 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 $676.33 and the market price for Model 212 is $380.30, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Price per unit Cost per unit Profit (loss) per unit Model 145 Model 212 < Required 2 Required 3 > Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round our intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor coat ($28 per DLH) Direct materials cost Product A Product B 1,100 unita 0.25 DL per unit $ 2.70 per unit 13,500 units 0.18 DL per unit $ 1.70 per unit Activity Machine astup Materials handling Quality control inspections Overhead costs $109,300 51,000 77,740 5238,049 Required: 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead Assigned Product A Product B Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B 2. If the market price for Product A is $28.82 and the market price for Product B is $65, determine the profit or loss per unit for each product. Market price Product A Product B 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Number of setups required for production Number of parts required Inspection hours required Machine setup Materials handling Quality control Overhead Assigned Product A Machine setup Materials handing Quality control Product B Machine setup Materials handing Quality control Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product A Product B 2 setups 32 6 part/unit 8 54 hours 245 setups part/unit hours Total Overhead Activity Driver Activity Rate Cost Product A Product B 4. Determine the profit or loss per unit for each product assuming ABC costing Market price Product A Product B 1.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? No Yes Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,800,000 Hazardous waste disposal costs. 620,000 Expected production Chairs 209,000 units Tables 22,000 units Direct labor hours required 272,000 DLH Hazardous waste disposed 400 pounds 16,200 DLH 700 pounds Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours. 0 Product Activity Driver OH $ per direct Total Overhead Cost Units Produced OH Cost per unit labor hour Chairs $ $ 0.00 $ 0 0 0.00 $ 0 0 Tables 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of. 0 Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit Chairs $ 0.00 $ 0 0 Tables $ 0.00 $ 0 0