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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 Activity Components Changeover Overhead Cost Driver Quantity $ 408,750 362, 858 260,400 $1,032,008 $ 269,990 326,250 29,400 $ 625, 640 $ 139,500 31,300 86,510 $ 257,310 Machining Setups Number of batches Machine hours Number of setups 750 7,940 140 4,900 870 140 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders Purchasing Providing space Providing utilities 465 6,300 6,300 Support Purchase orders Number of units Number of units 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 2,100 1,200 375 470 2,650 70 80 310 4,200 3,700 375 400 5,290 70 60 155
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