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.) Activity Components Changeover Machining Setups Process Overhead Cost $457,500 300,400 228,500 Driver Number of batches Quantity 750 7,590 80 Machine hours Number of setups 986,400 Finishing Welding Inspecting Rework $181,800 226,000 60,150 Welding hours Number of inspections 5,600 800 Rework orders 230 $ 467,950 Purchasing Providing space Providing utilities Support $135,500 31,450 Purchase orders 458 Number of units Number of units 4,800 4,800 60,900 $ 227,850 Additional production information concerning its two product lines follows. Model 145 1,600 2,200 375 Model 212 3,200 3,400 375 Units produced Welding hours Batches Number of inspections Machine hours 490 310 5,250 40 2,340 Setups Rework orders 40 160 70 Purchase orders 305 153
1. Using a plantwide overhead rate based product line on machine hours, compute the overhead cost per unit for each 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $190 for Model 212. OH Cost per unit Activity Driver Plantwide OH Units Overhead Assigned Total Overhead Cost Produced rate Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $736 and the market price for Model 212 is $430, determine the profit or loss per unit for each model. Model 145 Model 212 Market price (Prev 4 of 5 Next 4