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Way Cool produces two different models of alr conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with
Way Cool produces two different models of alr 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 actlvitles, costs, and
drivers assoclated with these two manufacturing processes and the production support process follow.
Additional production information concerning its two product IInes follows.
Required:
Using ABC, compute the overhead cost per unlt for each product line.
Determine the total cost per unlt for each product IIne If the direct labor and direct materlals costs per unlt are $ for Model
and $ for Model
If the market price for Model is $ and the market price for Model is $ determine the profit or loss per unit for
each model.
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