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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
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 (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Components Activity Changeover Machining Setups Overhead Cost $ 456,000 301,200 Driver Number of batches Machine hours 227,000 Number of setups Quantity 730 7,610 40 $ 984,200 Finishing Welding $ 180,500 Welding hours 4,200 Inspecting Rework 232,000 60,500 Number of inspections 780 Rework orders 150 $473,000 Support Purchasing $ 135,000 Purchase orders 465 Providing space Providing utilities $ 226,090 30,150 Number of units 4,800 60,940 Number of units 4,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 3,600 3,200 Welding hours 1,800 2,400 Batches 365 365 Number of inspections 505 275 Machine hours 2,310 5,300 Setups 20 20 Rework orders 110 40 Purchase orders 310 155 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 $180 for Model 145 and $140 for Model 212. Overhead Assigned Model 145 Model 212 Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit
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