Question

I need help with my assignment please

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 Process Activity Components Changeover Machining Setups Overhead Cost Driver $ 547,350 Number of batches 358,316 Machine hours 145,200 Number of setups Quantity 890 7,640 $1,050,866 Finishing Welding Inspecting Rework $ 344,300 Welding hours 259,250 Number of inspections 55,000 Rework orders 5,500 850 220 $ 658,550 Support Purchasing Providing space Providing utilities $ 213,675 Purchase orders 31,000 Number of units 131,120 Number of units 555 8,400 8,400 $ 375,795 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2 800 5.600 Welding hours 2.000 3,500 Batches 445 Number of inspections 460 390 Machine hours 2,350 5,290 Setups 40 Rework orders 150 Purchase orders 370 185 445 70

Answer 1

									Model 145			Model 212
Activity			Expected						Activity Driver	Overhead		Activity Driver	Overhead
Components			Costs	Expected Activity			Activity Rate		Used	Assigned		Used	Assigned
Changeover			$ 547,350.00	890	No. of batches		$    615.00		445	$    273,675.00		445	$    273,675.00
Machining			$ 358,316.00	7640	Machine hours		$      46.90		2350	$    110,215.00		5290	$    248,101.00
Setups			$ 145,200.00	80	Setups		$ 1,815.00		40	$      72,600.00		40	$      72,600.00
Finishing
Welding			$ 344,300.00	5500	Welding hours		$      62.60		2000	$    125,200.00		3500	$    219,100.00
Inspecting			$ 259,250.00	850	Inspections		$    305.00		460	$    140,300.00		390	$    118,950.00
Rework			$   55,000.00	220	Rework orders		$    250.00		150	$      37,500.00		70	$      17,500.00
Support
Purchasing			$ 213,675.00	555	Purchase orders		$    385.00		370	$    142,450.00		185	$      71,225.00
Providing space and utilities			$ 162,120.00	8400	Units		$      19.30		2800	$      54,040.00		5600	$    108,080.00
								Total OH cost		$    955,980.00			$ 1,129,231.00
								Total units produced		2800			5600
								OH cost per unit		$            341.42			$            201.65

				Model 145	Model 212
2)	Materials and Labor per unit			$    220.00	$    119.00
	Overhead Per unit			$    341.42	$    201.65
	Total cost per unit			$    561.42	$    320.65