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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 Activity Overhead Cost Driver Components Changeover Machining $ 453,500 301,800 Number of batches Quantity 770 Machine hours 7,520 Setups 226,000 Number of setups 120 $ 981,300 Finishing Welding Inspecting Rework $ 181,500 Welding hours 3,600 230,000 61,0se Number of inspections 760 Rework orders 250 $472,550 Support Purchasing Providing space $136,500 Purchase orders 465 Providing utilities 31,000 60,740 $ 228,240 Number of units 5,100 Number of units 5,100 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,700 Welding hours 1,000 3,400 2,600 Batches 385 385 Number of inspections 490 270 Machine hours 2,278 5,250 Setups 60 60 Rework orders 160 90 Purchase orders 310 155
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