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 Overhead Cost Driver Quantity Components Changeover $ 466,000 Number of batches 850 Machining 306,000 Machine hours 8,440 Setups 234,000 Number of setups 40 $ 1,006,000 Finishing Welding $ 184,000 Welding hours 5,200 Inspecting 227,000 Number of inspections 845 Rework 65,000 Rework orders 210 $ 476,000 Support Purchasing $ 133,000 Purchase orders 471 Providing space 31,500 Number of units 5,080 Providing utilities 67,000 Number of units 5,080 $ 231,500 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,000 3,080 Welding hours 1,600 3,600 Batches 425 425 Number of inspections 485 360 Machine hours 3,150 5,290 Setups 20 20 Rework orders 130 80 Purchase orders 314 157 Required 1 Determine departmental overhead rates and compute the overhead cost per unit for each product line Base your overhead assignment for the components department on machine hours Use welding hours to assign overhead costs to the finishing department Assign costs to the support department based on number of purchase orders 2 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $150 for Model 212 3 If the market price for Model 145 is $2,075 and the market price for Model 212 is $320, determine the profit or loss per unit for each model answer all parts Show less Components department Overhead costs Machine hours Finishing department erhead costs Welding hours es Support department ActivityDepartmental Total Overhead Cost Model 145 Driver OH Rate Components Finishing Support

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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	Overhead Cost			Driver	Quantity
Components	Changeover		$	466,000	Number of batches	850
	Machining			306,000	Machine hours	8,440
	Setups			234,000	Number of setups	40
			$	1,006,000
Finishing	Welding		$	184,000	Welding hours	5,200
	Inspecting			227,000	Number of inspections	845
	Rework			65,000	Rework orders	210
			$	476,000
Support	Purchasing		$	133,000	Purchase orders	471
	Providing space			31,500	Number of units	5,080
	Providing utilities			67,000	Number of units	5,080
			$	231,500

Additional production information concerning its two product lines follows.

	Model 145		Model 212
Units produced		2,000		3,080
Welding hours		1,600		3,600
Batches		425		425
Number of inspections		485		360
Machine hours		3,150		5,290
Setups		20		20
Rework orders		130		80
Purchase orders		314		157

Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $150 for Model 212. 3. If the market price for Model 145 is $2,075 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.

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Show less Components department Overhead costs Machine hours Finishing department erhead costs Welding hours es Support department ActivityDepartmental Total Overhead Cost Model 145 Driver OH Rate Components Finishing Support