Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 Quantity 790 7,630 180 Finishing Welding Inspecting Rework Overhead Cost Driver $ 453,500 Number of batches 300,200 Machine hours 226,000 Number of setups $ 979,700 $ 181,700 Welding hours 223,000 Number of yinepections 61,250 Rework orders $ 465,950 $ 137,500 Purchase orders 30,600 Number of units 60,050 Number of units $ 228,150 5,600 770 240 Support Purchasing Providing space Providing utilities 473 4.800 4,800 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 1,600 2,200 395 495 2,330 90 150 315 Model 212 3,200 3,400 395 275 5,300 90 90 158 oo OOOO 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 Show All items 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $160 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 $ 0 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $732 and the market price for Model 212 is $440, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started