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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. Process Activity Components Changeover Machining Setups Quantity 830 B, 110 88 Finishing Welding Inspecting Rework Overhead Cost Driver $ 452, 350 Number of batches 376, 384 Machine hours 147,200 Number of setups $ 975,854 $ 484,15 Welding hours 290,175 Number of inspections 66,00 Rework orders $ 768,325 $ 184,478 Purchase orders 32,180 Number of units 35.940 Number of units $ 252,510 5,900 795 240 Support Purchasing Providing space Providing utilities 473 3,600 3,600 Additional production Information concering its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 Model 212 1,200 2,480 2,480 3,500 415 415 465 330 2,850 5,260 40 40 150 90 315 158 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 $210 for Model 145 and $120 for Model 212 3. If the market price for Model 145 is $1.004.77 and the market price for Model 212 is $551.97, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 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.) Expected Costs Expected Activity Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Rate $ $ Activity Components Changeover Machining Setups Finishing Welding 452,350 378,304 147,200 830 Number of batches 8,110 Machine hours 80 Setups S Inspecting 404,150 290,175 88,000 5,900 Welding hours 795 Inspections 240 Rework orders Rework Support Purchasing Providing space and utilities $ 184,4701 88,040 473 Purchase orders 3,600 Units $ $ 0 Total overhead cost Total units produced Overhead cost per unit Required Required 2 > Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. Activities Costs Design department Client consultation Drawings Modeling Project management department Supervision Billings Collections 1,700 contact hours 2,680 design hours 50,000 square feet $ 238,eee 139, 100 30,000 900 days 6 Jobs 6 jobs $153,690 8,380 8,260 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 7.800- square-footjob that requires 420 contact hours, 352 design hours, and 190 days to complete. (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Activity Driver Incurred Overhead Assigned Client consultation Drawings Modeling Supervision Billings Collection Total overhead cost
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