Question
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 Overhead Cost Driver Quantity Components Changeover $ 455,500 Number of batches 810 Machining 301,200 Machine hours 7,610 Setups 225,500 Number of setups 200 $ 982,200 Finishing Welding $ 182,200 Welding hours 4,800 Inspecting 233,000 Number of inspections 800 Rework 60,100 Rework orders 290 $ 475,300 Support Purchasing $ 137,000 Purchase orders 473 Providing space 30,650 Number of units 5,700 Providing utilities 60,120 Number of units 5,700 $ 227,770 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,900 3,800 Welding hours 1,600 3,200 Batches 405 405 Number of inspections 490 310 Machine hours 2,310 5,300 Setups 100 100 Rework orders 170 120 Purchase orders 315 158 Required:
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