Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.) Overhead Cost Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 710 7,610 16e Finishing Welding Inspecting Rework 300,200 228, eee $ 985, 2ee $ 182,2ee 222, eee 61, 6ee $ 465, see $ 136, eee 31,9ee 68, 258 $ 228,158 Welding hours Number of inspections Rework orders 5, eee 760 23e Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 533 5,709 S, 7ee Additional production Information concerning its two product lines follows. Model 145 Model 212 qar Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Dr Nost Required: Using a planteide overhead rate based on machine hours, compute the overhead cost per unit for each product line and direct maten costs per unit are $200 for Model 145 and 2 Determine the total cost per unit for ead $150 for Model 212 Print Activity Driver Overhead Assigned Plan de OH rate Total Overhead Cost oduced Un ferences OH Cost per unit Model 145 Model 212 s Model 212 3. If the market price for Model 145 is $741 and the market price for Model 212 is $460. determine the profit or loss per unit for each model Model 145 Model 212 Market price 3 of 6 3 Next >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started