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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. Iloss amounts should be Indicated with a minus sign. Round your Intermediate cakulations and round "Cost per unit and OH rate" answer to 2 clecimal places. Overhead Cost Process Activity Components Changeover Machining Set ups Driver Number of batches Machine hours Number of setups Quantity 289 6,600 129 Finishing Welding Inspecting Rework 279,000 225,00 $1,684,680 $ 199,300 218,660 75,699 $ 465,380 $ 135,6ce 32,000 65,eee $ 232,000 Welding hours Number of inspections Rework orders 3,000 730 350 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 459 5,600 Additional production information concerning its two product lines follows. Model 212 3,580 2,200 490 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,5ee 899 499 499 1,880 69 169 339 339 4,280 69 149 159 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $250 for Model 145 and $180 for Model 212. Overhead Assigned Activity Driver Plant wide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 146 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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