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. (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.)
|Components||Changeover||$||457,000||Number of batches||810|
|Setups||229,000||Number of setups||200|
|Inspecting||225,000||Number of inspections||730|
|Providing space||32,250||Number of units||5,700|
|Providing utilities||60,700||Number of units||5,700|
Additional production information concerning its two product lines follows.
|Model 145||Model 212|
|Number of inspections||470||260|
Using a plant wide overhead rate based on machine hours, compute the overhead cost per unit for each product line.
Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $310 for Model 145 and $140 for Model 212.
If the market price for Model 145 is $755 and the market price for Model 212 is $470, determine the profit or loss per unit for each model.
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