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
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 rete" answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Quantity 850 7,730 100 Finishing Welding Inspecting Rework Overhead Cost Driver $ 453,000 Number of batches 300,800 Machine hours 229,000 Number of setups $ 982,800 $ 180, 500 Welding hours 228,000 Number of inspections 60,850 Rework orders $469,350 $ 135,000 Purchase orders 31,950 Number of units 60,130 Number of units $ 227,850 4,900 770 140 Support Purchasing Providing space Providing uttalties 473 4,800 4.800 Additional production Information concerning its two product lines follows 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 1,600 425 495 2,280 50 90 315 Model 212 3,200 3,300 425 275 5,450 5e 50 158 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 $230 for Model 145 and $200 for Model 212. Plantwide OH rate Total Overhead Cost Units Produced Activity Driver OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 o the market price for Model 145 is 5754 and the market price for Model 212 is $470, 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

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions

Question

Determine the direct labor costs for Alameda Manufacturing

Answered: 1 week ago

Question

8. Explain how to price managerial and professional jobs.pg 87

Answered: 1 week ago