Question

# Way Cool produces two different models of air conditioners. The company produces the mechanical systems in...

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.)

 Process Activity Overhead Cost Driver Quantity Components Changeover \$ 459,500 Number of batches 850 Machining 301,200 Machine hours 7,520 Setups 227,000 Number of setups 100 \$ 987,700 Finishing Welding \$ 180,900 Welding hours 4,500 Inspecting 222,000 Number of inspections 835 Rework 61,000 Rework orders 120 \$ 463,900 Support Purchasing \$ 137,000 Purchase orders 488 Providing space 30,100 Number of units 5,700 Providing utilities 60,060 Number of units 5,700 \$ 227,160

Additional production information concerning its two product lines follows.

 Model 145 Model 212 Units produced 1,900 3,800 Welding hours 1,000 3,500 Batches 425 425 Number of inspections 485 350 Machine hours 2,320 5,200 Setups 50 50 Rework orders 80 40 Purchase orders 325 163
 Required.
 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. ? ? 0 ? ? ? 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are \$210 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 ? ? \$0 ? ? Model 212 ? ? \$0 ? ? Model 145 Model 212 ? ? 0 3. If the market price for Model 145 is \$739 and the market price for Model 212 is \$440, determine the profit or loss per unit for each model. Model 145 Model 212 Market price ? ? ? ?

Note: Please solve the problem completely.

Thank you,

 1) overhead costs 1678760 223.24 per machine hour Machine hours 7,520 2) Overhead assigned Activity plantwide total oh units OH cost driver OH rate cost produced per unit Model 145 2,320 223.24 517915 1,900 272.59 model 212 5,200 223.24 1160845 3,800 305.49 total manufacturing cost Model 145 Model 212 per unit Materials and labor 210 120 overhead 272.59 305.49 total manufacturing cost 482.59 425.49 3) Model 145 Model 212 Market price 739 440 manufacturing cost per unit 482.59 425.49 profit (loss)per unit 256.41 14.51

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