Answered step by step
Verified Expert Solution
Link Copied!

Question

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.) Quantity 750 Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups 7,660 49 Finishing Welding Inspecting Rework Overhead Cost $ 457,50 3e1,800 226,500 $ 985,800 $ 182,78 233,eee 61,850 $ 477,550 $ 135, eee 31,5ee 68,890 $ 227,390 Welding hours Number of inspections Rework orders 4,1ee 799 260 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 548 4. Bee 4,880 Additional production Information concering its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,620 2,880 375 525 2,260 2e 160 Model 212 3,200 2,180 375 265 5,460 2e 180 183 365 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $210 for Model 145 and $120 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $748 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 to Expert-Tailored 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

Government And Not For Profit Accounting Concepts And Practices

Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese

9th Edition

1119803896, 978-1119803898

More Books

Students also viewed these Accounting questions