k Way Cool produces two different models of air conditioners. The company produces the mechanical...
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Accounting
k 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 Overhead Cost Driver Quantity Components Changeover $ 548, 250 Number of batches 850 Machining 373,410 Machine hours 8,100 Setups 253,400 Number of setups 140 $1,175,060 Finishing Welding 267, 240 Welding hours 5,100 Inspecting 290,500 Number of inspections 830 Rework 49,500 Rework orders 220 607,240 Support Purchasing 160, 125 Purchase orders 525 Providing space 31,100 Number of units 4,800 Providing utilities 57,700 Number of units 4,800 248,925 ncos $ $ $ $ Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,600 1,600 425 520 2,750 70 170 350 Model 212 3,200 3,500 425 310 5,350 70 50 175 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,600 1,600 425 520 2,750 70 170 350 Model 212 3,200 3,500 425 310 5,350 70 50 175 ces 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 $220 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $825.60 and the market price for Model 212 is $448.55, 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.) Help Save & E Submit 3 Check my work Required 1 Required 2 Required 3 50 points Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) eBook Expected Costs Expected Activity Activity Rate Model 145 Activity driver Overhead incurred assigned 4 References Activity Incum $ 548.250 373,410 253.400 850 Number of batches 8,100 Machine hours 140 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 267.240 290,500 49,500 5.100 Welding hours 830 Inspections 220 Rework orders $ 160,125 88.800 525 Purchase orders 4,800 Units Total overhead cost Total units produced Overhead cost per unit Required Required 2 > answers to 2 decimal places.) Activity Rate Model 145 Activity driver Overhead Incurred assigned Model 212 Activity driver Overhead incurred assigned Total overhead cost Total units produced Overhead cost per unit Required 2 >




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