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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, Process Components Activity Changcover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 810 8, 340 40 Finishing Welding Inspectine Rework Overhead Cost $ 506,250 381,138 74,800 $ 962,188 $ 318,990 297, cea 72,500 $ 688,490 $ 189, 200 30.300 135, 300 $ 354,800 Welding hours Number of inspections Rework orders 4,900 825 250 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 473 9,000 9,800 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 3,000 1,600 405 455 3,850 20 140 315 Model 212 6,000 3,300 485 370 5,290 29 110 158 Required: 1. Using ABC, 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 $240 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $547.20 and the market price for Model 212 is $293.37, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 146 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Expected Activity Expected Costs Activity Rate S 506,250 381,138 74 800 810 Number of batches 8.340 Machine hours 40 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities S 318,990 297,000 72,500 4.900 Welding hours 825 Inspections 250 Rework orders S 189,200 185,600 473 Purchase orders 9,000 Units Total overhead cost Total units produced Overhead cost per unit Prnu 1 of 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $112 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Required 1 Required 2 Required 3 If the market price for Model 145 is $547.20 and the market price for Model 212 is $293.37, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
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