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

90.2K

Verified Solution

Question

Accounting

imageimage

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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,470 180 Finishing Welding Inspecting Rework Overhead Cost $ 458,000 301,800 228,000 $ 987,800 $ 181,600 223,000 60,950 $ 465,550 $ 136,000 31,400 60,850 $ 228,250 Welding hours Number of inspections Rework orders 4,300 800 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 510 5,100 5, 100 Additional production information concerning its two product lines follows. Model 145 1,700 1,600 Model 212 3,400 2,700 365 365 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 310 490 2,270 90 130 340 5,200 90 100 170 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 line if the direct labor and direct materials costs per unit are $240 for Model 145 and $170 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $737 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students