Question
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined
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 Driver $ 482,050 405,650 umber of betches Machine hours Quantity 670 ,540 24,800 Number of setups 5963,100 Finishing Welding Inspecting Revork $310,240 Welding hours 5,600 356,125 Number of inspections 925 62,400 Revork orders 200 $720,765 Support Purchasing $187,200 Purchase orders 430 Providing space 32,100 Number of units 3,600 Providing utilities 36,660 Number of units 3,600 $255,960 Additional production information concerning its two product lines follows Units produced Model 145 1,300 Model 212 3,400 Welding hours 2,000 3,600 Batches 435 435 Sumber of Inspections 410 Machine hours 1,250 5,290 Setups 20 20 Remork orders 150 110 Purchase orders 320 160 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 $240 for Model 145 and $119 for Model 212 3. If the market price for Model 145 is $1.012.34 and the market price for Model 212 is $545.20, determine the profit or loss per unn for each model Complete this question by entering your answers in the tabs below.
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