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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. Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 91e 8,410 60 Finishing Welding Inspecting Rework Overhead Cost $ 474.990 305,80 229,880 $1,898, $ 186, 231,080 62,50 $ 479,500 $ 147. eee 37,5ee ze, 880 254.se Welding hours Number of inspections Rework orders 4,78e 88e 160 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 519 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 1,789 1,600 455 580 3,850 Model 212 3,180 3,180 455 38e 5,360 3e 346 173 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 $230 for Model 145 and $110 for Model 212 3. If the market price for Model 145 is $950 and the market price for Model 212 is $270, 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 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overh assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finish 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! Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support
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