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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

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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. Activity Overhead Cost Process Components Changeover Driver 890 8,080 200 5 609,850 Number of batches Machining Setups 331,238 365,000 Machine hours Number of setups 51,355,888 Finishing Inspecting Welding 5,400 850 270 5 300,240 Welding hours 310,250 Number of inspections Rework 78,300 Rework orders 5 688.790 SupportPurchasing Providing space Providing utilities 5 188,6805 Purchsse orders 30.900 Number of units 125.430 Number of units 563 8,100 8,100 5 344.935 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 5.400 4.000 445 1.400 445 490 2,750 100 150 375 5,310 100 120 188

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