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Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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.) Activity Overhead Cost Driver Quantity Process Components Changeover $ 500,000 Number of batches Machining Setups 279,000 Machine hours 225, 000 Number of setups 800 6,000 120 1,004,000 3,000 700 300 Finishing Welding $ 180,300 Welding hours Inspecting Rework 210,000 Number of inspections 75,000 Rework orders 465,300 Purchasing Providing space Providing utilities65,000 N $ 135,000 Purchase orders 32,000 Number of units of units 450 5, 000 5,000 Support $ 232,000
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