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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.) Process Activity Components Changeover Machining Setups Overhead Cost $ 500,000 279,000 225,000 $1,004,000 $ 616 210,000 Driver Number of batches Machine hours Number of setups Quantity 800 6,000 120 Finishing Welding Inspecting Reverk Welding hours Number of inspections Revork orders 3.000 700 300 $ Support Purchasing Providing space Providing utilities 465,300 1 066 32.000 65,000 232,000 Purehase orders Number of units Number of unita 450 5,000 5.000 $ Additional production information concerning its two product lines follows. Model 165 1.500 800 Model 212 3,500 2.200 400 300 4,200 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 400 1,800 140 300 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. OP 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212. Activity Driver Plantwide OH Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 US $ o Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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