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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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 930 7,590 140 Finishing Welding Inspecting Rework Overhead Cost $ 452,890 301,800 225,500 $ 979,300 $ 181,600 222,eee 60,550 $ 464,150 $ 136,500 30,650 60,320 $ 227,470 Welding hours Number of inspections 4,899 715 Rework orders 238 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 458 5,790 5,700 Additional production information concerning its two product lines follows. Model 212 3,800 2,899 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 465 Model 145 1,989 1,200 465 460 2,290 ze 150 305 255 5,300 70 88 153 1. Using a plantwide overhead rate based on machine hours, 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 $260 for Model 145 and $150 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Model 145 Total Overhead Cost Units Produced OH Cost per unit Model 212 Model 145 Model 212 3. If the market price for Model 145 is $751 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. Market price Model 145 Model 212 Prev 1 of 3 Next 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 Driver Number of batches Machine hours Number of setups Quantity 770 8,200 20 Finishing Welding Inspecting Rework Overhead Cost $ 478,000 303,000 226,000 $1,007,000 $ 186,000 234,000 64,500 $ 484,500 $ 139,000 31,500 68,000 $ 238,500 Welding hours Number of inspections Rework orders 6,100 865 200 Support ces Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 561 4,719 4,710 Additional production information concerning its two product lines follows. Model 145 1,600 2,000 385 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 212 3,110 4,100 385 380 5,350 10 70 485 2,850 10 130 374 187 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 $300 for Model 145 and $130 for Model 212. 3. If the market price for Model 145 is $1,775 and the market price for Model 212 is $290, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. 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 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 4 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support 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 Driver Number of batches Machine hours Number of setups Quantity 779 8,220 190 Finishing Welding Inspecting Rework Overhead Cost $ 442,750 384,696 187,500 $1,014,946 $ 292,050 251,625 49,450 $ 593,125 $ 192,760 30,500 87,310 $ 310,570 Welding hours Number of inspections Rework orders 4,500 825 238 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 6,300 6,300 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,100 1,400 385 465 2,950 50 170 Model 212 4,200 3,100 385 360 5,270 50 60 325 163 y WER 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 $250 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $674.46 and the market price for Model 212 is $361.20, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Activity Expected Costs Model 145 Expected Activity Activity Rate Activity driver incurred Components Changeover Machining Overhead assigned Model 212 Activity driver Ove Incurred ass $ 442,750 384 696 Setups 770 Number of batches 8,220 Machine hours 100 Setups 187,500 Finishing Welding LII $ 292,050 251,625 Inspecting Rework Sunt 4,500 Welding hours 825 Inspections 230. Rework orders 49,450
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