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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
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.) Overhead cost Driver Process Activity Components Changeover Machining Quantity 850 7,670 455,000 301,400 225,500 Number of batches Machine hours Number of setups Setups 140 981,900 Finishing Welding Inspecting $181,700 225,000 60,600 Welding hours Number of inspections 3,400 730 Rework Rework orders 270 $467,300 135,500 31,050 60,670 Purchasing Providing space Providing utilities Support Purchase orders 548 Number of units 5,100 5,100 Number of units 227,220 Additional production information concerning its two product lines follows Model 212 Model 145 1,700 1,400 425 3,400 2,000 425 Units produced Welding hours Batches Number of inspections Machine hours 475 255 2,270 5,400 Setups 70 70 Rework orders 150 120 Purchase orders 365 183 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 $200 for Model 145 and $210 for Model 212. Units Activity Plantwide OH OH Cost per Overhead Assigned Total Overhead Cost Driver Produced unit rate Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $757 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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