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
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 Quantity 790 7,610 120 Finishing Welding Inspecting Rework Overhead Cost Driver $ 454,500 Number of batches 301,600 Machine hours 228,500 Number of setups $984,600 $ 181,800 Welding hours 227,000 Number of inspections 61,150 Rework orders $ 469,950 $ 137,500 Purchase orders 31,350 Number of units 60,230 Number unit $229, 180 3,500 795 220 Support Purchasing Providing space Providing utilities 570 4,500 4,500 Additional production Information concerning its two product lines follows Units produced Welding hours Batches Number of Inspections Machine hours Model 145 1,500 1,400 395 465 2,310 Model 212 3.000 2,100 395 330 5,300 Additional production information concerning its two product lines follows, Units produced Welding hours Batchen Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 1,400 395 465 2,310 60 140 380 Model 212 3,000 2,100 395 330 5,300 60 80 190 Required: Using a plantwide overhead rate based on machine hours, compute the overhead cont per unit for each product line 2. Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $290 for Model 145 and 5170 for Model 212 Activity Driver Plantwido OH rato Units Produced OH Coat per unit Overhead Assigned Model 145 Model 212 Total Overhead Cost s $ 1. Using a plantwido overhead rate based on machine hours, compute the overhead cost per unit for each product line 01 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit aro $290 for Model 145 and $170 for Model 212 Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Activity Driver Plantwide OH rate Total Overhead Cost $ 0 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $739 and the market price for Model 212 is $500, determine the profit or los per unit for each model Model 212 Market price Model 145

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

Becker CPA Exam Final Review Auditing

Authors: Becker

1st Edition

1943628521, 978-1943628520

More Books

Students also viewed these Accounting questions