Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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.) Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 750 7,610 120 Finishing Welding Inspecting Rework Overhead Cost $ 452,500 301,600 229,000 $ 983, 100 $ 182,400 225,000 60,250 $ 467,650 $ 136,500 31,750 60,030 $ 228,280 Welding hours Number of inspections Rework orders 5,000 770 180 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 548 4,500 4,500 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Dunchacandone Model 145 1,500 2,600 375 500 2,310 60 90 D65 Model 212 3,000 2,400 375 270 5,300 60 90 10) Machine hours Setups Rework orders Purchase orders 2,310 60 90 365 5,300 60 90 183 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 0 Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $170 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $747 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. 3. If the market price for Model 145 is $747 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 Required information [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Materials Other Overhead Indirect Labor $350,000 $130,000 Production Activity Grinding Polishing Product modification Providing power System calibration 600,000 $ 205,000 420,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 19,000 machine hours 1,600 engineering hours 18,000 direct labor hours 850 batches Job 4286 1,750 units 4,000 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 140 units 400 MH eng. 33 hours 25 batches 430 DLH 28 eng. hours 75 batches 3,870 DLH System calibration 850 batches Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 140 units 400 MH eng. 33 hours 25 batches 430 DLH Job 4286 1,750 units 4,000 MH eng. 28 hours 75 batches 3,870 DLH Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Product DL hours Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Job 3175 $ 0.00 $ 0 Job 4286 $ 0.00 $ 0 W.] Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow. Process Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 2,500 2,500 500 Department 2 Machine calibration Labeling Defects Overhead cost $ 6,100 10,900 114,100 $ 131, 100 $ 330,000 16,500 9,000 $ 355,500 $ 85,000 43,000 81,000 $ 209,000 Production runs Cases of output Cases of output 600 170,000 170,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 85 2,500 10 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 36,000 cases 360 batches 1,050 MH 60 groups 8 containers 270 runs Family Style 134,000 cases 140 batches 1,450 MH 25 groups 2 containers 330 runs 5. If the market price is $16 per case of Extra Fine and $10 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Strategies For Financial Services Compliance

Authors: Annie Mills, Peter Haines

2nd Edition

1118906136, 978-1118906132

More Books

Students also viewed these Accounting questions

Question

=+2. Are any of the interactions of the variables significant?

Answered: 1 week ago

Question

How can the Internet be helpful in a job search? (Objective 2)

Answered: 1 week ago