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

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Accounting

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Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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 Activity Overhead Cost Driver Quantity 710 7,630 120 Process Components Changeover $ 457,950 Number of batches Machining Setups 356,321 219,600 Machine hours Number of setups $1,033,871 $ 274,380 Welding hours 5,100 805 210 Finishing Welding 309,925 Number of inspections Inspecting Rework 59,850 Rework orders $ 644,155 Purchasing Providing space Providing utilities Support $ 196,350 30,600 42,720 Purchase orders Number of units Number of units 510 3,900 3,900 $ 269,670 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 1,300 1,000 355 475 2,350 60 130 340 2,600 4,100 355 330 5,280 60 80 170

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