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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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,610 60 Finishing Welding Inspecting Rework Overhead Cost $ 453,500 300,600 229,000 $ 983,100 $ 181,200 230,000 61,850 $ 473,050 $ 137,000 30,700 60,640 $ 228,340 Welding hours Number of inspections Rework orders 4,000 825 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 458 4,800 4,800 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 1,600 2,000 365 485 2,310 30 170 305 Model 212 3,200 2,000 365 340 5,300 30 60 153 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 1.684,490 $ 221.35 per machine hour Machine hours 7,610 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 and $170 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 2,310 $ 5,300 $ 221.35 221.35 511,319 1,173,155 1,600 $ 3,200 $ 319.57 366.61 Model 212 $ Model 145 Model 212 Total manufacturing cost per unit: Materials and Labor Overhead 319.57 366.61 Total manufacturing cost 3. If the market price for Model 145 is $758 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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