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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

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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 the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 850 8,570 Book 140 Hint Finishing Welding Inspecting Rework Overhead Cost $ 463, 250 400,219 256.900 $1,120,369 $ 274.950 296, 700 53, 100 $ 624,750 $ 190, 320 31,900 119,420 $ 341, 540 Welding hours Number of inspections Rework orders 4, 700 860 180 erences Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 7,800 7. BOD 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 2,600 1,200 425 490 3. 250 70 Model 212 5, 200 3,500 425 380 5, 320 70 100 80 325 163 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 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 $119 for Model 212. 3. If the market price for Model 145 is $615.45 and the market price for Model 212 is $338.27. determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. S. Prey 3 017 = Next >

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