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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 $ 454,000 301,600 226,500 $982,100 $ 183,000 221,000 60,650 $ 464,650 $ 137,500 32,350 60,300 $ 230,150 Machining Setups Number of batches Machine hours Number of setups 910 7,680 220 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 5,100 845 210 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 548 4,800 4,800 Support Additional production information concerning its two product lines follows Model 145 Model 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 1,600 1,800 455 525 2,280 110 80 365 3,200 3,300 455 320 5,400 110 130 183
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