Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. bits Quantity 830 Process Activity Components Changeover Machining Setups Skipped 8.640 200 Finishing eBook Welding Inspecting Rework Overhead Cost Driver $ 456,000 Number of batches 303,000 Machine hours 234,000 Number of setups $993.000 $ 192,000 Welding hours 234.000 Number of inspections 63.500 Rework orders $ 489,500 $ 145,000 Purchase orders 35,500 Number of units 70.000 Number of units $ 250, 500 4,500 810 260 Print Support Purchasing Providing space Providing utilities 459 4.910 4.910 References 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 1,800 1.200 415 470 3.350 100 Model 212 3,110 3.300 415 340 5.290 100 120 306 153 ce Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $170 for Model 212 3. If the market price for Model 145 is $1,625 and the market price for Model 212 is $290, determine the profit or loss per unit for each model. Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing points Support Skipped eBook Hint Activity Driver Departmental OH Rate Total Overhead Cost Print References Model 212 Components Finishing Support Reovired2 Complete this question by entering your answers in the tabs below. points Skipped Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are 145 and $170 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal pla eBook Hint Model 145 Model 212 Print References Materials and Labor per unit Overhead cost per unit Total cost per unit points Skipped Required 1 Required 2 Required 3 eBook If the market price for Model 145 is $1,625 and the market price for Model 212 is $290, determine the profit or lo for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and to 2 decimal places.) Hint Print Model 145 Model 212 References Market price per unit Cost per unit Profit (loss) per unit Required 2 points Skipped Required 1 Regitred 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $170 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) eBook Model 145 Model 212 References Materials and Labor per unit Overhead cost per unit Total cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions