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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 Activity Components Changeover Machining Setups Quantity 830 7,620 160 Finishing Welding Inspecting Rework Overhead Cost Driver $ 455,500 Number of batches 300,600 Machine hours 229,500 Number of setup $ 985,600 $ 180,500 Welding hours 222,000 Number of inspections 61,750 Rework orders $ 464,250 $ 134,500 Purchase orders 31,600 Number of units 60,050 Number of units $ 226,150 5,000 760 190 Support Purchasing Providing space Providing utilities 495 6,300 6,300 Additional production Information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setupa Rework orders Purchase orders Model 145 2,100 2,400 415 465 2,320 120 330 Model 212 4,200 2,600 415 295 5,300 80 70 165 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 $300 for Model 145 and $110 for Model 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,100 2,400 415 465 2,320 BO 120 330 Model 212 4,200 2,600 415 295 5.300 80 70 165 Required: 1. Using a plantwide overhead rate based on machine hors, 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 $300 for Model 145 and $110 for 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 3. If the market price for Model 145 is $741 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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