Question

Way Cool produces two different models department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and air conditioners. The company produces the mechanical systems in their components 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 $ 500,000 Number of batches B00 Machining 279.000 Machine hours 6,000 Setups 225,000 Number of setups 120 $1,004,000 Finishing Welding $ 180, 300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 $ 465,300 Support Purchasing $ 135,000 Purchase orders Providing space 32,000 Number of units Providing utilities 65,000 Number of units $ 232,000 450 5,300 5.000 es Additional production information concerning its two product lines follows Model 212 3,500 2,200 400 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 800 400 400 1.800 60 160 30e 300 4,200 140 150 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line of 2 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit for Model 145 and $180 for Model 212. Next >

Answer 1

using compute the a plant wide overhead rate based on machine hours, & Determine the total cost per unit for each product line if the & 1701, 300 Machine hours 6,000 overhead cost per unit for each product line Overhead costs $ 283, 55 Per machine hour direct labor and direct materials costs per unit for Model 145 and $ 180 for Model 2121 are $250 overhead Assigned Activity Driver 1, doo Plantwide To tal OH rate overhead $ 283.55 $ 510,390 $283.55 $1,190,910 Model 145 Units Produced 1,500 3,500 $340.26 LOH cost per unit $ 340.26 Model 212 4200 Model 145 Model 212 Total manufacturing cost per unit. Materials Labor and $ 250 $ 100 Overhead $ 340.26 $ 340:26 Total manufacturing cost $ 590.26 $ 520.26 unit each 3. If the market price for Model 145 is & 820 and the market peure for model 212 is $480, determine the profit or loss per for model Model 45 Model 212 Market price 480 Manufacturing cost per unit $ (590.26) $ (520:26) Profit (loss) per unit $ 229.74 $(40-26) & 820 1 Calculation: Overhead cast Overhead cast of components + Overhead cost of Finishing & Overhead cast support - $ 1,004,000 + $ 465, 300 + $ 232,000 $ 1,701, 300

Per machine hour Overhead costs } machine howrs & 1701, 300 6,000 283.55 per machine hour Total overhead cost Activity driver & Plantwide of rate Model 145: Total overhead cost 1,800 X & 283.55 & 510,390 Model 2123 Total overhead cost 4, 200 X $ 283.55 & 1,190, 910 OH cost per unit Total overhead cost units Produced