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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 770 8,220 100 Overhead Cost $ 442,750 384,696 187,500 $1,614,946 $ 292,850 251,625 49,450 $ 593,125 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 4,500 825 239 Support Purchasing Providing space Providing utilities $ 192,760 30,500 87,310 $ 310,570 Purchase orders Number of units Number of units 488 6,300 6,388 Additional production information concerning its two product lines follows. Model 145 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,100 1,400 385 465 2,950 Model 212 4,200 3,100 385 360 5,270 50 50 170 325 60 163 Check my work 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 $250 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $674.46 and the market price for Model 212 is $361.20, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Activity Expected Costs Expected Activity Model 146 Activity driver Overhead Incurred assigned Model 212 Activity driver Ove incurred Activity Rate ass Components Changeover $ 442.750 770 Number of batches Machining 384,696 8.220 Machine hours 100 Setups Setups 187,500 Finishing Welding s 292,050 251 625 4.500 Welding hours 825 Inspections Inspecting Rework 49,450 230 Rework orders Save & Exit Submit ctivity Expected Costs Expected Activity omponents Activity Rate Model 145 Activity driver Overhead incurred assigned Check my work Model 212 Activity driver Overhe incurred assign Changeover $ 442.750 Machining 770 Number of batches Setups 8.220 Machine hours 384,696 187,500 inishing 100 Setups Welding $ 292050 Inspecting Rework 251,625 49 450 4,500 Welding hours 825 Inspections 230 Rework orders upport Purchasing Providing space and utilities $ 488 Purchase orders 192,760 117,810 6,300 Units Total overhead cost s 0 $ Total units produced Overhead cost per unit A

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_2

Step: 3

blur-text-image_3

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

The Love Audit

Authors: Annah Conwell

1st Edition

B0B9SMDYNM, 979-8843874452

More Books

Students also viewed these Accounting questions