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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 Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 790 8,400 120 Finishing Welding Inspecting Rework Overhead cost $ 462150 383, 040 227,400 $1,072,590 $ 264, 180 277,200 46,750 $ 588,130 $ 155,775 31,100 109, 150 $ 296,025 Welding hours Number of inspections Rework ordens 5, 100 770 170 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 465 7,500 7,500 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 2,500 1,000 395 460 3,050 60 Model 212 5,000 4,100 395 319 5, 350 60 60 155 110 310 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 $210 for Model 145 and $116 for Model 212 3. If the market price for Model 145 is $563.43 and the market price for Model 212 is $331.34, determine the profit or loss per unit for each model. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned $ 790 Number of batches 462,150 383,040 227 400 8,400 Machine hours 120 Setups es Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 264, 180 277 200 46,750 5,100 Welding hours 770 Inspections 170 Rework orders 155.775 140,250 465 Purchase orders 7,500 Units $ 0 S 0 Total overhead cost Total units produced Overhead cost per unit Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 $116 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit
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