Question

Way Cool produces two different models of alr 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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 850 8. 150 148 Finishing Welding Inspecting Rework Overhead Cost $ 556,75€ 379,790 263, 280 $1,199,740 $ 396,728 277,200 64.800 $ 738.728 158.445 31,700 53 35€ $ 243,495 Welding hours Number of inspections Rework orders 5,789 840 240 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 503 4,500 4.500 Additional production Information concerning its two product lines follows. Model 145 1.589 1.600 Model 312 3,000 4. 199 425 360 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2.850 5,300 70 120 120 335 168 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $119 for Model 212 3. If the market price for Model 145 is $883.16 and the market price for Model 212 is $520.39, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Activity Rate Expected Activity $ 3 558.750 79.7908 263.200 850 Number of batches ,150 Machine hours 140 Setups | Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 395.720 277,200 64.800 5.700 Welding hours 840 Inspections 2 40 Rework orders $ 158.445 85.050 503 Purchase orders 4.500 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 >

Answer 1

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A Process Component в Activity Changeover Machining Setups Finishing Wielding Inspecting Rework Overhead cost Driver Quantity 556750 Number of batches 379790 Machine hours 263200 Number of setups 1199740 396720 Welding hours 277200 Number of inspections 64800 Rework orders 738720 158445 Purchase orders 31700 Number of units 53350 Number of units 243495 Cost/Driver (C/E) Model 145 (Overhead cost Model 212 (Overhead cost) 850 655 278375 278375 8150 46.6 132810 246980 140 1880 131600 131600 (a) 542785 656955 5700 69.6 111360 285360 840 330 158400 118800 240 270 32400 32400 (b) 302160 436560 503 315 105525 52920 4500 7.04 10566.66667 21133.33 4500 11.86 17783.33333 35566.67 133875 109620 Support Purchasing Providing space Providing Utilities (c) Total Overhead cost (a+b+c) Number of units Overhead cost per unit 978820 1500 1203135 3000 401.05 652.55 Overhead cost of specific product line=Cost/driver* driver specific to product line Model 145 Total Cost per unit Direct Material & Labor(a) Overhead cost (b) Total Cost per unit (a+b) Model 212 230 652.55 882.55 119 401.05 520.05 Model 145 Market Price Total Cost per unit Profit per unit/(Loss per unit) Model 212 883.16 882.55 520.39 520.05 0.34