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. Quantity Process Activity Components Changeover Machining Setups 350 Driver Number of batches Machine hours Number of setups 8,480 140 Finishing 5,600 Welding Inspecting Rework Overhead Cost $ 468,000 304,000 224,000 $996,000 $ 190,000 226,000 62,500 $ 478,500 $ 147,000 34,000 67,000 $ 248,000 Welding hours Number of inspections Rework orders es 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 519 4,880 4,880 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,800 2,480 425 515 3,150 70 80 346 Model 212 3,080 3,200 425 390 5,330 70 70 173 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $270 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $950 and the market price for Model 212 is $270, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support
