Way Cool produces two different models of air conditioners. The company produces the mechanical systems...
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Accounting
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 $452.000 Number of batches 790 Machining 306,000 Machine hours 8,510 Setups 230,000 Number of setups 200 $ 988,000 Finishing Welding $ 188,000 Welding hours 4.400 Inspecting 226,000 Number of inspections 815 Rework 64,500 Rework orders 260 $ 478,500 Support Purchasing $ 145,000 Purchase orders 561 Providing space 37.000 Number of units 5,130 Providing utilities 63,000 Number of units 5,130 $ 245,000 nces Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 3,030 Welding hours 1,200 3,200 Batches 395 395 Number of inspections 465 350 Machine hours 3,250 5,260 Setups 200 100 Rework orders 150 Purchase orders 374 187 110 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 ore $230 for Model 145 and $180 for Model 212 3. If the market price for Model 145 is $1,400 and the market price for Model 212 is $280, determine the profit or loss per unit for each model Components department 0 Finishing department 0 Support department 0 Model 145 Activity Driver Departmental OH Rato Total Overhead Cost $ 0 Components Finishing Support $ 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost 0 Components Finishing Support $ $ 0 0 Required 2 > 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 of the direct labor and direct materials costs per unit ore $230 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $1,400 and the market price for Model 212 is $280, 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 if the direct labor and direct materials costs per unit are $230 for Model 145 and $180 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit





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