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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. (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 Overhead Cost $ 455,500 300,600 Driver Number of batches Machine hours Number of setups Quantity 830 7,650 180 225,500 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 4,800 805 189 $ 981,600 $ 182,800 232,000 61,200 $ 476,000 $ 134,000 31,400 60,130 $ 225,530 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 548 5,100 5,100 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 1,700 1,200 415 460 2,300 90 140 365 Model 212 3,400 3,600 415 345 5,350 90 40 183 Required: 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 $300 for Model 145 and $130 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $748 and the market price for Model 212 is $510, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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