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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 with
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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 770 7,690 200 Finishing Welding Inspecting Rework Overhead Cost $ 459,500 380,800 226,500 $986,800 $ 181,200 221,080 60, 700 $ 462,900 $ 137,500 31,150 60.930 $ 229,50 Welding hours Number of inspections Rework orders 3,900 720 190 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 5,100 5,100 Additional production information concerning its two product lines follows Units produced Welding hours Entches Number of Inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 1.000 385 460 2,340 100 150 330 Model 212 3,400 2.100 385 310 5.350 100 40 165 Required: 1. Using a plantwide overhead rate based on machine lours compute the overhead cost per unit for each product line 0 2. Determine the total cost per unit for each product line if the direct labor and direct material costs per unit are 5260 for Model 145 and 3170 for Model 212 Activity Driver Plantwide OH Yate Total Overhead cost Units Produced OH Cost per unit 0 Overhead Assigned Model 145 Model 212 0 Model 145 Model 212 0 3. If the market price for Model 145 is 5753 and the market price for Model is $480, determine the profit or loss per unit for each model Model 145 Model 212 Market price
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