Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. Process Components Activity Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Overhead Cost Driver $ 554,850 377,304 Number of batches Machine hours 296,000 Number of setups Quantity 810 7,960 160 $1,228,154 $ 339,570 268,125 Welding hours 4,900 Number of inspections 825 50,400 Rework orders 210 $ 658,095 $ 146,400 Purchase orders 488 31,200 Number of units 7,200 101,280 Number of units 7,200 $ 278,880 Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced 2,400 4,800 Welding hours 1,600 3,300 Batches 405 405 Number of inspections 485 340 Machine hours 2,650 5,310 Setups 80 80 Rework orders 100 110 Purchase orders 325 163 es Rework orders Purchase orders Required: 100 325 130 163 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 $200 for Model 145 and $118 for Model 212. 3. If the market price for Model 145 is $61118 and the market price for Model 212 is $364.14, 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 Components Expected Costs Expected Activity Changeover S 554 850 010 Number of batches Machining 377 304 7,960 Machine hours Setups 296 000 160 Setups Finishing Welding S 330 570 4 900 Welding hours Model 145 Model 212 Activity Rate Activity driver incurred Overhead Activity driver Ove assigned incurred Activity Components Changeover Machining Setups Finishing MOD 143 MOOD Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead Activity driver Ove assigned incurred 554,850 377,304 810 Number of batches 7.960 Machine hours 296 000 160 Setups Welding S 339 570 4,000 Welding hours Inspecting 268,125 825 Inspections Rowork 50.400 210 Rework orders Support Purchasing $ Providing space and utilities 140,400 132,480 488 Purchase orders 7.200 Units Total overhead cost Total units produced Overhead cost per un Required 2 > 5 $ the overhead cost per unit for each product line, (Round your final answers to 2 decimal places.) Model 145 Expected Costs Expected Activity Activity Rate Activity driver incurred S 554 850 377 304 296,000 810 Number of batches 7.960 Machine hours 160 Setups 339 570 268,125 4,900 Welding hours 825 Inspections 50,400 210 Rework orders $ 146.400 488 Purchase orders tes 132 480 7,200 Units Total overhead cost Total unts produced Overhead cost per un Required 2 > Model 212 Overhead Activity driver assigned incurred Overhead assigned S S . 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 $200 for Model 145 and $118 for Model 212. 3. If the market price for Model 145 is $611.18 and the market price for Model 212 is $364.14, 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 $200 for Model 145 and $118 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 > 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 $200 for Model 145 and $118 for Model 212. 3. If the market price for Model 145 is $611.18 and the market price for Model 212 is $364.14, 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 $611.18 and the market price for Model 212 is $364.14, 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>

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cma Part 1 Financial Reporting Planning Performance And Control

Authors: Nathan Liao

1st Edition

1545045992, 978-1545045992

More Books

Students also viewed these Accounting questions