Way Cool produces two different models of air conditioners. The company produces the mechanical systems in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Overhead Cost $ 538,450 386,937 223,200 $1,148,587 $ 249,750 Driver Machine hours Quantity 890 8,430 120 Number of batches Number of setups Welding hours 4,500 322,000 Number of inspections 920 45,000 Rework orders 180. $616,750 5 196,875 Purchase orders 525 31,200 118,650 $346,725 Number of units 8,100 Number of units 8,100 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,700 5,400 Welding hours 1,600 2,900 Batches 445 445 Number of inspections 520 400 Machine hours 3,150 5,200 Setups 60 60 Bework orders 90 90 Purchase orders 350 175 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 $116 for Model 212 3. If the market price for Model 145 is $590.99 and the market price for Model 212 is $322.32, determine the profit or loss per unit for each model 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 Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Overhead Cost $ 538,450 386,937 223,200 $1,148,587 $ 249,750 Driver Machine hours Quantity 890 8,430 120 Number of batches Number of setups Welding hours 4,500 322,000 Number of inspections 920 45,000 Rework orders 180. $616,750 5 196,875 Purchase orders 525 31,200 118,650 $346,725 Number of units 8,100 Number of units 8,100 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,700 5,400 Welding hours 1,600 2,900 Batches 445 445 Number of inspections 520 400 Machine hours 3,150 5,200 Setups 60 60 Bework orders 90 90 Purchase orders 350 175 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 $116 for Model 212 3. If the market price for Model 145 is $590.99 and the market price for Model 212 is $322.32, determine the profit or loss per unit for each model
Expert Answer:
Answer rating: 100% (QA)
1 Using ABC compute the overhead cost per unit for each product line To compute the overhead cost pe... View the full answer
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says the unit product cost for this bracelet is $270.00, as shown below. Direct materials Direct...
-
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 assemble)...
-
If straight-line and double-declining balance depreciation rates for n = 8 years are calculated and compared, the rates (in percent) for the second year are?
-
This is similar to Section 2.2 Problem 28: Use algebraic simplifications to find the limit. Use a fraction. 2x-6 lim x+3x-9 =
-
At State University, the average score of the entering class on the verbal portion of the SAT is 565, with a standard deviation of 75. Marian scored a 660. How many of State's other 4250 freshmen did...
-
The Dunley Corp. plans to issue 5-year bonds. It believes the bonds will have a BBB rating. Suppose AAA bonds with the same maturity have a 4% yield. Assume the market risk premium is 5% and use the...
-
Yes, if the portfolio's beta is equal to zero. In practice, however, it may be impossible to find individual stocks that have a nonpositive beta. In this case it would also be impossible to have a...
-
Below is a series of cost of goods sold sections for companies A, F, L, and V. Instructions Fill in the lettered blanks to complete the cost of goods soldsections. 250 20 1,000 (G) 43,590 Beginning...
-
Huskey Mining Corporation issued bonds with a par value of $ 1 0 4 , 0 0 0 on January 1 , 2 0 2 3 . The annual contract rate on the bonds is 8 . 5 0 % , and the interest is paid semiannually. The...
-
Jane wants to buy a townhouse that costs 91 000 The bank requires a 10 down payment The rest is financed with a 15 year fixed rate mortgage at 5 annual interest with monthly payments Complete the...
-
(b) Sodium chloride is an ionic compound with the chemical formula NaCl. (i) Give the electron configurations of sodium (Na) and chlorine (Cl) using spdf notation. [2 marks] (ii) Use electron...
-
St Kilda Enterprises produces parts for electronics industry. The production manager and the cost analyst reviewed the accounts for previous accounts and have provided an estimated breakdown fixed...
-
Define java class Kids that has two private instance variables name and age (0.5 mark). Define three overloaded constructor methods with zero argument (receives no name and no age) (0.5 mark), one...
-
What type of strategic pricing is used by these theme parks?
-
Kiyara ( single ) is a 5 0 percent shareholder of Guardian Corporation ( an S Corporation ) . Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $ 3 2 4 , 0 0 0 of...
-
Which one of the following news headlines definitely concerns the social interest? OA. Starbucks Expands in China OB. Bill Gates Hires Assistant OC. Connor McDavid Signs Entry Level Contract With...
-
The executor of Gina Purcells estate has recorded the following information: Assets discovered at death (at fair value): Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Below you will find the annual returns of two assets. Fill in the blanks and graph the returns of the portfolios (rows 13-27). A B C 1 Asset 1 Asset 2 2 31-Dec-90 12.56% 7.56% 3 31-Dec-91 13.50%...
-
By using information provided in the previous problem, perform a regression of the portfolio returns vs. S&P500 index returns for the period of 24 months. Report: The slope of the regression, its...
-
(This is a hard question!) On the disk which comes with the book, you will find 2 years of monthly un-adjusted and adjusted stock price data for AT&T corporation (symbol: T). Calculate: 16.a....
Study smarter with the SolutionInn App