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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 Components Changeover Machining Setups Overhead Cost $ 496,650 395,254 189,500 Driver Number of batches Machine hours Quantity 770 8,630 100 Number of setups $1,081,404 Finishing $ Welding Inspecting Rework 384, 720 279,450 36,000 Welding hours Number of inspections Rework orders 5,600 810 150 $ 700, 170 Support $ Purchasing Providing space Providing utilities Purchase orders Number of units 548 5,100 191,800 32,000 63,880 287,680 Number of units 5, 100 $ Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Model 145 1,700 1,600 385 470 3,350 50 Model 212 3,400 4,000 385 340 Setups Rework orders 5,280 50 40 110 Purchase orders 365 183 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.) Model 145 Model 212 Activity Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Activity driver incurred Overhead assigned Components Changeover $ 496,650 770 Number of batches Machining 395,254 8,630 Machine hours Setups 189,500 100 Setups Finishing Welding $ 384,720 5,600 Welding hours Inspecting 279,450 810 Inspections Rework 36,000 150 Rework orders Support Purchasing $ 191,800 548 Purchase orders Providing space and utilities 95,880 5,100 Units Total overhead cost $ 0 $ 0 Total units produced Overhead cost per unit Complete this question by entering your answers in the tabs below. 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 $200 for Model 145 and $113 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $762.11 and the market price for Model 212 is $441.22, 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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