Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
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 setup Quantity 800 6,000 120 Finishing Welding Inspecting Rework Overhead Cost $ 500,000 279.000 225,000 $1,004,000 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections Revork orders 3,000 200 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5,000 5,000 Additional production information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setup Revork orders Purchase orders Model 145 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 Required: Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product lino. 2. Determine the total cost per unit for each product line If the direct labor and direct materials costs por unlt are $250 for Model 145 and $180 for Model 212 Activity Plantwide OH rate Driver Total Overhead Cost OH Cost per Overhead Assigned Model 145 Model 212 Units Produced unit Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 Is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance A Focused Approach

Authors: Michael C. Ehrhardt, Eugene F. Brigham

6th edition

978-1305637108

Students also viewed these Accounting questions