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. Process Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Overhead Cost Driver Quantity Number of $ 506,250 810 batches 361,820 Machine hours 7,900 295, 200 Number of setups 160 $1,163,270 $ 276,660 Welding hours 5,300 308, 775 Number of 895 inspections 37,600 Rework orders $ 623,035 $ 180,840 Purchase orders 548 30,600 Number of units 6,000 160 Support Purchasing Providing space Providing utilities Number of units 6,000 81,600 293,040 $ Additional production information concerning its two product lines follows. Model 145 Model 212 2,000 4,000 2,200 3,100 405 405 495 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,550 80 80 365 400 5,350 80 80 183 Required: 1. Using ABC, 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 $220 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $710.56 and the market price for Model 212 is $394.28, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity Overhead driver incurred assigned Expected Costs Model 212 Activity Overhead driver incurred assigned Activity Expected Activity Activity Rate Components Changeover $ 506,250 Machining 361,820 Number of 810 batches Machine 7,900 hours 160 Setups 295,2001 Setups Finishing Welding Inspecting $ 276,660 308,775 5,300 Welding hours 895 Inspections Rework 160 orders Rework 37,600 Support Purchasing Providing space and utilities $ 180,840 112,200 Purchase 548 orders 6,000 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity Overhead driver incurred assigned Expected Costs Model 212 Activity Overhead driver incurred assigned Activity Expected Activity Activity Rate Components Changeover $ 506,250 Machining 361,820 Number of 810 batches Machine 7,900 hours 160 Setups 295,2001 Setups Finishing Welding Inspecting $ 276,660 308,775 5,300 Welding hours 895 Inspections Rework 160 orders Rework 37,600 Support Purchasing Providing space and utilities $ 180,840 112,200 Purchase 548 orders 6,000 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $119 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 If the market price for Model 145 is $710.56 and the market price for Model 212 is $394.28, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Show less Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
