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 Quantity Driver Number of batches Machine hours Number of setups Components Changeover Machining Setups 910 7,520 40 Finishing Welding Inspecting Overhead Cost $459,000 300,800 227,500 $987,300 $182,000 226,000 60,950 $468,950 $137,500 30,750 Welding hours Number of inspections Rework orders 4,900 840 Rework 270 Support Purchase orders Number of units Purchasing Providing space Providing utilities 555 6,300 60,910 Number of units 6,300 $229, 160 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 Model 212 2,100 4,200 1,800 3,100 455 455 515 325 2,320 5,200 20 20 150 120 370 185 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 and $160 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Units Produced OH Cost per unit Total Overhead Cost $ $ 0 Model 145 Model 212 0 Model 145 Model 212 0 3. If the market price for Model 145 is $746 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 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 Finishing Welding Inspecting Rework Overhead Cost Driver Quantity Number of $ 472,000 770 batches 309,000 Machine hours 8, 100 231,000 Number of setups 40 $1,012,000 $ 190,000 Welding hours 4,800 Number of 231,000 845 inspections 64,500 Rework orders 210 $ 485,500 147,000 Purchase orders 531 30,500 Number of units 4,900 Support Purchasing Providing space Providing utilities 68,000 Number of units 4,900 $ 245,500 Additional production information concerning its two product lines follows. Model 145 Model 212 1,800 3, 100 1,400 3,400 385 385 465 380 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,750 20 160 354 5,350 20 50 177 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 $270 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,100 and the market price for Model 212 is $250, determine the profit or loss per unit for each model. Required Required Required 1 2 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 A Components department 0 Finishing department 0 Support department 0 Model 145 Activity Departmental Driver OH Rate Total Overhead Cost $ $ Components Finishing Support 0 0 0 Model 212 Activity Departmental Driver OH Rate Total Overhead Cost $ $ Components Finishing Support 0 0 0 Required Required Required 1 2 3 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 $200 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Show less A Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Required Required Required 1 2 3 If the market price for Model 145 is $1,100 and the market price for Model 212 is $250, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Show less Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
