Xie Company identified the following activities, costs and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic Activity Expected Coats Expected Activity Handling materials 5660,000 100,000 parts Inspecting product 935,000 1.500 batches Processing purchase orders 140, een 700 orders Paying suppliers 210,000 500 invoices Insuring the factory 335,ce 40,000 square feet Designing packaging 110,000 2 models Assume that the following information is available for the company's two products for the first quarter of this year, Production volume Parts required Batches made Purchase orders Invoices Space occupied Models Deluxe Model 1 10, one units 20,000 parts 250 batches 50 orders 50 invoices 10,000 sqft 1 model Basic Model 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 7,000 ft 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC) What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Activity Rate Cost driver quantity incurred OH Allocated Deluxe Activity Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging Basic Activity Activity Rate Cost driver quantity incurred OH Allocated Basic Activity Rate Cost driver quantity incurred OH Allocated Activity Handing materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging 800 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. (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 $ 500,000 Number of batches Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups $1,004,000 Finishing Welding $ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections Rework 75,000 Rework orders 300 $ 465,300 Support Purchasing $ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 120 700 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 Model 145 1,500 Bee 400 dea 1.800 6e 16e 380 Model 212 3,5ee 2,200 400 300 4,200 60 140 150 Required: 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 are $250 for Model 145 and 5180 for Model 212. if the direct labor and direct materials costs per unit Activity Driver Plantwide OH rate Overhead Assigned Units Produced Total Overhead Cost OH Cost per unit Model 145 Model 212 Plantwide OH Activity Driver Total Overhead Cost Units Produced OH Cost per unit rate Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
