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 assocated with these two manufacturing processes and the production support process follow Process Activity Components changeover Machining Setups Overhead Cost Driver Quantity Number of $500,000 batches 300 279,000 Machine hours 6,000 Number of 225,000 120 setups $1,004,000 $ 180,300 Welding hours 3,000 Number of 210,000 700 inspections 75,000 Rework orders $ 465,300 $ 135,000 Purchase orders 450 32,000 Number of units 5,000 es Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities 65,000 Number of units 5,000 232,000 $ Additional production Information concering its two product lines follows. Model 145 Model 212 1,500 3,500 800 2.200 400 400 Un to produced Welding hours Batehen Number of inspections Machine hours Setupa Revork orders Purchase orders 400 300 4,200 1,800 60 160 300 140 150 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product the Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 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 $180 for Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unt for each model Complete this question by entering your answers in the tabs below. Required Required Required Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department TO Finishing department Support department Activity Departmentdotal Overhead Driver OH Rate Cost Model 145 Components Finishing Support Model 212 Activity Department total Overhead Driver OH Rate Cost Components Finishing Support Red Required 2 > Complete this question by entering your answers in the tabs below. Required Required 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 $180 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Show less Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit (Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required Required Required If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Show less Model 145 Model 212 Market price per unit Cost per unit Profit loss) per unit (Required 2 Required 3)
