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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. Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 830 7,960 180 Finishing Welding Inspecting Rework Overhead Cost $ 452,350 363,772 326,700 $1,142,822 $ 282,880 256,750 54,050 $ 593,680 $ 160,820 31,900 87,800 $ 280,520 Welding hours Number of inspections Rework orders 5,200 790 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 473 6,300 6,300 Additional production information concerning its two product lines follows. Model 145 2,100 1,400 415 Model 212 4,200 3,800 415 320 5,310 90 110 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 470 2,650 90 120 315 158 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 1,400 415 470 2,650 90 120 315 Model 212 4,200 3,800 415 320 5,310 90 110 158 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 $240 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $676.24 and the market price for Model 212 is $381.93, 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.) Model 145 Mo e overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate $ 452,350 830 Number of batches 363,772 7,960 Machine hours 326,700 180 Setups $ 282,880 256,750 54,050 5,200 Welding hours 790 Inspections 230 Rework orders $ 160,820 473 Purchase orders ies 119,700 6,300 Units Total overhead cost $ 0 $ 0 Total units produced Overhead cost per unit 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 $240 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $676.24 and the market price for Model 212 is $381.93, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
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