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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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 910 7,730 200 Finishing Welding Inspecting Rework Overhead Cost $ 559,650 364,856 371,000 $1,295,506 $ 334,360 364,000 44,100 $ 742,460 $ 170,560 31,200 48,180 $ 249,940 Welding hours Number of inspections Rework orders 5,200 910 180 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 533 4,200 4,200 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Model 145 1,400 1,400 455 520 2,450 100 Model 212 2,800 3,800 455 390 5,280 100 Rework orders Purchase orders 100 355 80 178 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 $220 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $965.91 and the market price for Model 212 is $556.83, determine the profit or loss per unit for each model. 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.) Model 145 Activity driver Overhead incurred assigned Model 21 Activity driver C incurred Activity Expected Costs Expected Activity Activity Rate S 559,650 364,856 371,000 910 Number of batches 7,730 Machine hours 200 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities S 334,360 364.000 5,200 Welding hours 910 Inspections 180 Rework orders 44,100 S 170,560 79,380 533 Purchase orders 4,200 Units S 0 S Total overhead cost Total units produced Overhead cost per unit Nominad Hel 212 Overhead assigned S 0 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 $220 for Model 145 and $112 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 Required 3 > Complete this question by enterii your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $965.91 and the market price for Model 212 is $556.83, 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
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