Question

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 Components Activity Changeover Machining Overhead Cost 5 ,650 Driver Number of batches Quantity Number of setups 7.710 Finishing Inspecting welding hours Huber of inspections 5,100 Support Purchasing Previda ce Providing utilities purchase orders Number of units 6. 6. Additional production information concerning its two product lines follows Model 145 welding hours 1,200 of Inspections Purchase orders Required: 1. Using ABC, compute the overhead cost per unit for each product line 2. Determine the total cost per unit for each product in the direct labor and direct materials costs per unit are $210 for Model 45 and $115 for Model 2012 3. If the market price for Model 145 is $713.09 and the market price for Model 212 5413.29. determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below Required 2 Using ABC compute the overhead cost per forach product line. Round your finala 2 decimal place Expected Costs Expected Activity 004,650l 70 Number of the 7.710 Machine hours 342.000 274.000 5.100 Welding hours 345 Inspections 287 300 Type here to search

Answer 1

25 Model 145 Activity Rate Model 212 Overhead assigned Expected Costs Expected Activity Activity driver incurred Activity driver incurred Overhead assigned $ $ 604,650 361,599 342,000 870 Number of batches 7710 Machine hours 180 Setups $ 695.00 per batch $ 46.90 per machine hour $ 1,900.00 per setup 435 $ 2,450 $ 90$ 302,325 114,905 171,000 435 $ 52601 $ 90 $ 302,325 246,694 171,000 $ 26 Activity 27 Components 28 Changeover 29 Machining 30 Setups 31 Finishing 32 Welding 33 Inspecting 34 Rework 35 Support 36 Purchasing 37 Providing space and utilities 38 39 40 $ $ 274,890 287,300 53,900 5,100 Welding hours 845 Inspections 220 Rework orders $ $ $ 53.90 per welding hour 340.00 per inspection 245.00 per rework order 1200 $ 505 $ 160$ 64,680 171,700 39,200 3,900 $ 340 $ 60 $ 210,210 115,600 14,700 ] $ $ 155,720 112,800 4 58 Purchase orders 6,000 Units $ $ 305S 2,000 $ 153 $ 4,000 $ 340.00 per purchase order 18.80 per unit Total overhead cost Total units produced Overhead cost per unit 103,700 37,600 1,005, 110 2,000 502.56 $ 52,020 75,200 1,187,749 4,000 296.94 $ $ 42 43 Model 145 $ 210.00 502.56 712.56 Model 212 $ 116.00 $ 296.94 $ 412.94 44 Materials and Labor per unit 45 Overhead per unit 46 Total cost per unit 47 48 49 Price per unit 50 Cost per unit 51 Profit (loss) per unit 52 Model 145 $ $ $ 713.09 712.56 0.53 Model 212 $ 413.29 $ 412.94 $ 0.35