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 Quantity Components Changeover $ 500,000 Number of batches Machining 279,00 Hachine hours Setups 225,000 Number of setups $1,004,000 Finishing Welding $ 150,300 Welding hours 30 Inspecting 210,000 700 Number of inspections Rework 75,800 Rework orders 465,300 Support Purchasing $ 135,000 Purchase orders Providing space 32,000 Number of units Providing utilities 65.000 Number of units $ 232,000 BDO 6,000 120 300 450 5,000 5.000 Additional production information concerning its two product lines follows 232,000 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 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 380 4,200 60 140 150 Required: & Answer is not complete. 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each Required: Answer is not complete. 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 500.000 $ 1.79 Machine hours 279,000 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212 OH Cost Overhead Assigned Model 145 Model 212 Activity Driver 1,800 4.200 Plantwide Total Overhead OH rate Cost is 837.00 $ 1,506,600 0 Units Produced 4200 6 % per unit Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost Model 145 250.00 5 Model 212 180 00 $ $ 250.00 S 180.00 Overhead Assigned OH Cost Model 145 Model 212 Activity Driver 1,800 4,200 Plantwide Total Overhead OH rate Cost $ 837.00 X $ 1,506,600 0 per unit Units Produced 4,200 6% Model 145 250.00 Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost Model 212 180.00 $ 250.00 180.00 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 820.00 480.00 Manufacturing cost per unit (250.00) (180.00) Profit/loss) per unit 445.12 765.59 $
