Question

please do required #1-3

Check my work 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. 0.85 points Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 800 6,000 120 (8 01:57:31 Finishing Welding Inspecting Rework Overhead Cost $ 500,000 279,000 225,000 $1,004,000 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections Rework orders 3,000 700 300 eBook Hint Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5,000 5,000 Print References Additional production information concerning its two product lines follows. Model 212 3,500 2,200 400 Model 145 1,500 800 400 400 1,800 60 160 300 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 300 4,200 60 140 150 Required: Screenshot

Answer 1

Solution 1:

Computation of Departmental Overhead rates and overhead cost per unit
Department	Overhead cost	Allocation Base	Qty of allocation base	Overhead rate	Model 145		Model 212
					Activity Driver	Allocated Overhead cost	Activity Driver	Allocated Overhead cost
Components	$1,004,000.00	Machine hours	6000	$167.33	1800	$301,200	4200	$702,800
Finishing	$465,300.00	Welding hours	3000	$155.10	800	$124,080	2200	$341,220
Support	$232,000.00	Purchase orders	450	$515.56	300	$154,667	150	$77,333
Total						$579,947		$1,121,353
Nos of units						1500		3500
Overhead cost per unit						$386.63		$320.39

Solution 2:

Computation of Per unit Cost
Particulars	Model 145	Model 212
Direct material and labor	$250.00	$180.00
Overhead cost per unit	$386.63	$320.39
Cost per unit	$636.63	$500.39

Solution 3:

Computation of Profit (Loss) per unit
Particulars	Model 145	Model 212
Selling price per unit	$820.00	$480.00
Cost per unit	$636.63	$500.39
Profit (Loss) per unit	$183.37	-$20.39