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. (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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 770 7,730 160 Finishing Welding Inspecting Rework Overhead Cost $ 452,800 301,000 226,500 $ 979,500 $ 182,700 229,000 61, 800 $ 473,500 $ 135,500 31, 200 60,830 $ 227.530 Welding hours Number of inspections Rework orders 4,400 795 200 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 533 5, 100 5, 100 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Nachine hours Setups Rework orders Purchase orders Model 145 1,700 2,400 385 455 2,330 80 Model 212 B. 400 2,000 385 340 5,400 90 B55 110 178 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ $ 217.40 per machine hour Machine hours 1,680,530 7,730 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $120 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 217.40 S 506.542 2,330 5 400 1.700 Model 212 21740 $ 1.173.960 3.400 Model 145 Model 212 Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost 3. If the market price for Model 145 is $730 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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