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 transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image 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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 850 8, 420 180 Finishing Welding Inspecting Rework Overhead Cost $ 446,250 389,004 341, 100 $1,176,354 $ 272,320 255,000 49,200 $ 576,520 $ 151,360 31,700 40,060 $ 223, 120 Welding hours Number of inspections Rework orders 4,600 850 240 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 473 3,900 3,900 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 1,300 1,600 425 500 3,150 90 160 315 Model 212 2,600 3,000 425 350 5,270 90 80 158 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $115 for Model 212. 3. If the market price for Model 145 is $934.71 and the market price for Model 212 is $513.38, determine the profit or loss per unit for each model Preu 9 of 12 PRE Neyt Check my work 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are >210 for Model 145 and $115 for Model 212 3. If the market price for Model 145 is $93471 and the market price for Model 212 is $513.38, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rute Model 145 Activity driver Overhead incurred assigned Activity incum $ 446,250 389,004 341,100 850 Number of batches 8,420 Machine hours 180 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 272,320 255.000 49,200 4,600 Welding hours 850 Inspections 240 Rework onders $ 151,360 71,760 473 Purchase orders 3,900 Units Total overhead cost Total units produced Overhead cost per unit Required 2 > Check my each product line if the direct labor and direct materials costs per unit are $210 for Model 145 5934.71 and the market price for Model 212 is $513.38, determine the profit or loss per unit for 9 your answers in the tabs below. 3 per unit for each product line. (Round your final answers to 2 decimal places.) *pected Costs Expected Activity Activity Rate Model 146 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned $ 446,250 389,004 341,100 850 Number of batches 8.420 Machine hours 180 Setups 272,320 255,000 49,200 4,500 Welding hours 850 Inspections 240 Rework orders $ 151,360 75.760 473 Purchase orders 3.900 Units Total overhead cost Total units produced Overhead cost per unit Required 2 > 315 158 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Moc and $115 for Model 212 3. If the market price for Model 145 is $934.71 and the market price for Model 212 is $513.38, determine the profit or loss per each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $115 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for and $115 for Model 212. 3. If the market price for Model 145 is $934.71 and the market price for Model 212 is $513.38, determine the profit or loss p each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reqhired 3 If the market price for Model 145 is $934.71 and the market price for Model 212 is $513.38, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit

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_2

Step: 3

blur-text-image_3

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

Internal Auditing An Integrated Approach

Authors: Richard Cascarino

1st Edition

0702166693, 978-0702166693

More Books

Students also viewed these Accounting questions

Question

Distinguish between tension and compression.

Answered: 1 week ago