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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 Overhead Cost Driver Quantity Components Changeover $ 559, 650 Number of batches 910 Machining 375,840 Machine hours 8,100 Setups 256,200 Number of setups 140 $1,191,690 Finishing Welding $ 328,350 Welding hours 5,500 Inspecting 304,200 Number of inspections 845 Rework 66, 150 Rework orders 270 $ 698,700 Support Purchasing $ 163,200 Purchase orders 510 Providing space 32,100 Number of units 6,680 Providing utilities 91,320 Number of units 6,600 $ 286,620 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Model 145 2,200 1,600 455 495 2,750 70 Model 212 4,480 3,900 455 350 5,350 70 "Secups Rework orders Purchase orders 150 340 70 120 170 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 $112 for Model 212. 3. If the market price for Model 145 is $663.30 and the market price for Model 212 is $380.79, determine the profit or loss per unit for each model Model 145 Activity driver Overhead incurred assigned Mode Activity driver incurred Activity Expected Costs Expected Activity Activity Rate $ 559,650 375,840 256,200 910 Number of batches 8,100 Machine hours 140 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities S 328,350 304,200 66,150 5,500 Welding hours 845 Inspections 270 Rework orders S 163,200 123,420 510 Purchase orders 6,600 Units S 0 Total overhead cost Total units produced Overhead cost per unit Model 212 river Overhead ed assigned $ 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 $210 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $663.30 and the market price for Model 212 is $380.79, 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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