Question

Chapter 4 Homework a Seved 4 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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. points Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 819 7,760 220 eBook Finishing Welding Inspecting Rework Overhead Cost $ 473,850 357,736 409,400 $1,231,966 $321,280 318,750 36,000 $ 676,00 $ 180,840 31,500 134,670 $ 47,010 Melding hours Number of Inspections Rework orders 6,400 850 100 Support Purchasing Providing space Providing utilities Purchase order Number of units Number of units 548 3.79 8.780 Print Additional production information concerning its two product lines follows Model 145 2.900 Model 212 5,800 405 330 Units produced Welding hours Batches Number of Inspections Machine hours Setups Rework orders Purchase orders 520 2,450 110 BO 365 110 100 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 $200 for Model 145 and $121 for Model 212 3. If the market price for Model 145 is $565 30 and the market price for Model 212 is $32798, determine the profit or loss per un for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required M < Prox 4 of 14 Next > PER

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Answer 1

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Way Cool	Answer 1
Calculation of ABC rates for overhead			A	B	C=B/A
Process	Activity cost pool	Cost Driver	Cost	Quantity	ABC rates
Components	Changeover	Number of batches	473,850.00	810.00	585.00
	Machining	Machine hours	357,736.00	7,760.00	46.10
	Setups	Number of Setups	400,400.00	220.00	1,820.00
	Total Cost assigned		1,231,986.00
Process	Activity cost pool	Cost Driver	Cost	Quantity	ABC rates
Finishing	Welding	Welding hours	321,280.00	6,400.00	50.20
	Inspecting	Number of inspections	318,750.00	850.00	375.00
	Rework	Rework orders	36,000.00	180.00	200.00
	Total Cost assigned		676,030.00
Process	Activity cost pool	Cost Driver	Cost	Quantity	ABC rates
Support	Purchasing	Purchase orders	180,840.00	548.00	330.00
	Providing space	Number of units	31,500.00	8,700.00	3.62
	Providing utilities	Number of units	134,670.00	8,700.00	15.48
	Total Cost assigned		347,010.00

			See C	D	D=C*D	E	F=C*E
	Allocation table			Model 145	Model 212
Process	Activity cost pool	Cost Driver	ABC Rates	Activity used	Cost assigned	Activity used	Cost assigned
Components	Changeover	Number of batches	585.00	405.00	236,925.00	405.00	236,925.00
	Machining	Machine hours	46.10	2,450.00	112,945.00	5,310.00	244,791.00
	Setups	Number of Setups	1,820.00	110.00	200,200.00	110.00	200,200.00
Finishing	Welding	Welding hours	50.20	2,400.00	120,480.00	4,000.00	200,800.00
	Inspecting	Number of inspections	375.00	520.00	195,000.00	330.00	123,750.00
	Rework	Rework orders	200.00	80.00	16,000.00	100.00	20,000.00
Support	Purchasing	Purchase orders	330.00	365.00	120,450.00	183.00	60,390.00
	Providing space	Number of units	3.62	2,900.00	10,498.00	5,800.00	20,996.00
	Providing utilities	Number of units	15.48	2,900.00	44,892.00	5,800.00	89,784.00
	Total Cost assigned				1,057,390.00		1,197,636.00
	Number of units				2,900.00		5,800.00
	Overhead cost per unit				364.62		206.49

Answer 2
Total cost per unit	M Add a comment Know the answer? Add Answer to: attached is the complete question, please review. Chapter 4 Homework a Seved 4 Way Cool produces... Your Answer: Post as a guest Your Name: What's your source? Earn Coins Coins can be redeemed for fabulous gifts. Log In Sign Up Post as anonymous Post Your Answer Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free. Similar Homework Help Questions Ch 17 Homework W Way Cool produces two different models of air conditioners. The company produces... Ch 17 Homework W Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. 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