Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its component

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Way Cool Produces Two Different Models Of Air Conditioners The Company Produces The Mechanical Systems In Its Component 1 (36.38 KiB) Viewed 45 times

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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 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 Quantity 750 8,290 220 Finishing Welding Inspecting Rework Overhead Cost Driver $ 462,000 Number of batches 305,000 Machine hours 226,000 Number of setups $ 993,000 $ 190,000 Welding hours 222,800 Number of inspections 62,000 Rework orders $ 474,000 $ 143,000 Purchase orders 35,500 Number of units 66,000 Number of units $ 244,500 5,600 910 140 Support Purchasing Providing space Providing utilities 549 5,030 5,030 Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced 2,000 3,030 Welding hours 2,600 3,000 Batches 375 375 Number of inspections 510 400 Machine hours 2,950 5,340 Setups 110 110 Rework orders 100 40 Purchase orders 366 183
119.78 per machine hour $ 993 000 $ 8,290 Components department Overhead costs Machine hours Finishing department Overhead costs Welding hours Support department Overhead costs Number of purchase orders 84.64 per welding hour $ 474.000 $ 5,600 445.36 per purchase order $ 244,500 $ 549 Activity Driver 993,000 Departmental OH Rate Model 145 Components Finishing Support Total Overhead Cost $ 0 $ 0 0 0 Model 212 Activity Driver Departmental OH Rate Components Finishing Support Total Overhead Cost $ 0 $ 0 0
Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders, 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,025 and the market price for Model 212 is $330, 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 Determine the total cost per unit for each product line of the direct labor and direct materials costs per unit are $230 for Model 145 and $200 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places) Model 146 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit < Required 1 Required 3 >
Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,025 and the market price for Model 212 is $330, 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 If the market price for Model 145 is $1,025 and the market price for Model 212 is $330, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit < Required 2 Red