Question
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined
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. Process Activity Overhead Cost $ 458,000 Driver Components Changeover Machining Setups Finishing Welding Number of batches Quantity 790 309,000 Machine hours 8,330 230,000 Number of setups BO $997,000 $186,000 Welding hours 5,400 Inspecting 222,000 Number of inspections 865 Rework 61,000 Rework orders 240 $469,000 Support Purchasing $141,000 Purchase orders 471 Providing space 35,500 Number of units, 5,210 Providing utilities 63,000 Number of units 5,210 $239,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Unita produced 2,200 3,010 Welding hours 1,400 4,000 Batches 395 395 Number of inspections 495 370 Machine hours 3,050 5,280 Setups 40 40 Rework orders 160 80 Purchase orders 314 157 Required:
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