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. (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	Overhead Cost				Driver	Quantity
Components	Changeover		$	455,000		Number of batches	930
	Machining			301,200		Machine hours	7,680
	Setups			228,500		Number of setups	180
			$	984,700
Finishing	Welding		$	182,500		Welding hours	4,600
	Inspecting			221,000		Number of inspections	775
	Rework			62,050		Rework orders	180
			$	465,550
Support	Purchasing		$	137,500		Purchase orders	458
	Providing space			30,450		Number of units	6,000
	Providing utilities			60,170		Number of units	6,000
			$	228,120

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,000			4,000
Welding hours		1,800			2,800
Batches		465			465
Number of inspections		455			320
Machine hours		2,330			5,350
Setups		90			90
Rework orders		100			80
Purchase orders		305			153

Required:

Next Visit question map

Question16of17Total16 of 17

Prev

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. (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 Overhead Cost Driver Quantity Components Changeover 455, 000 Number of batches 930 7,680 180 301,200 228,500 $984,700 182,500 221,000 62,050 $465,550 137,500 30,450 60,170 228,120 Machining Setups Machine hours Number of setups 4,600 775 180 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 458 6,000 6,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,000 1,800 465 455 2,330 90 100 305 4,000 2,800 465 320 5,350 90 80 153 1. Using a plantwide overhead rate based on machine hours, 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 $170 for Model 212. Plantwide OH rate Units Total Overhead CostProduced OH Cost per unit Overhead Assigned Model 145 Model 212 Driver Model 145 Model 212 3. If the market price for Model 145 is $747 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price