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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 follovw Process Activity Components Changeover Overhead Cost Driver Quantity $ 466,000 312,000 224,000 $1,002,000 Number of batches Machine hours Number of setups 910 7,960 200 Machining Setups Finishing Welding 190,000 230,000 62,000 $ 482,000 Welding hours Number of inspections Rework orders 5,300 840 270 Inspecting Rework $ 145, 000 34,500 71,000 $ 250,500 Purchase orders Number of units Number of units 513 5,020 5,020 Support Purchasing roviding spa Providing utilities P ce Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,000 2,200 455 510 2,650 100 150 342 3,020 3,100 455 330 5,310 100 120
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