Question

Saved ULE ALLAVALY Components Changeover Machining Setups LILY 930 8,550 20 Finishing Welding Inspecting Rework UVEDU LUE VELVE $ 581,250 Number of batches 403,560 Machine hours 37,580 Number of setups $1,022,310 $ 401,380 Welding hours Number of 283,075 inspections 60,200 Rework orders $ 744,655 $ 170,850 Purchase orders 31,900 Number of units 6,100 845 280 Support Purchasing Providing space Providing utilities 510 5,700 Number of units 5,700 75,830 $ 278,580 Additional production Information concerning its two product lines follows Model 145 Model 212 Units produced 1,900 3,800 Welding hours 2,400 Batches 3,700 465 465 Number of inspections 505 340 Machine hours 3,250 5,300 Setups 10 10 Rework orders 160 120 Purchase orders 340 170 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 $240 for Model 145 and $114 for Model 212 3. If the market price for Model 145 is $750 30 and the market price for Model 212 is $39628. determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required Required Required 1 2 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Model 212 Activity Expected Activity Activity Expected Activity Overhead Costs Activity Rate driver Overhead driver incurred assigned Incurred assigned Components Changeover Number of $ 581.250 930 batches Machine Machining 403.560 8,550 hours Setups 37.500 20 Setups Finishing Welding $ 401,380 6.100 Welding hours Inspecting 283,075 845 Inspections Rework 60,200 280 Rework orders Support Purchasing Purchase $ 170,850 510 orders Providing space and votes 107 730 5,700 Units Total overhead cost 0 0 Total units produced Overhead cost per unit

Answer 1

							Model 145		model 212
Activity		Expected	Expected activity		Activity rate		Activity	oh	Activity	oh
		costs					driver	assigned	driver	assigned
Components
Changeover		581,250	930	no batches	625	no batches	465	290625	465	290625
Machining		403,560	8,550	MH's	47.2	MH's	3,250	153400	5,300	250160
Setups		37,500	20	no setups	1875	no setups	10	18750	10	18750
Finishing
Welding		401,380	6,100	welding hrs	65.8	welding hrs	2,400	157920	3,700	243460
Inspecting		283,075	845	no inspections	335	no inspections	505	169175	340	113900
Rework		60,200	280	Re orders	215	Re orders	160	34400	120	25800
Support
Purchasing		170,850	510	pur orders	335	pur orders	340	113900	170	56950
providing space&yutilit		107,730	5,700	no units	18.9	no units	1,900	35910	3,800	71820
		2,045,545				total oh		974080		1071465
						units produced		1,900		3,800
						oh cost per unit		512.67		281.96
				model 145	model 212
2)
	Materials and labor per unit			240.00	114.00
	overhead cost per unit			512.67	281.96
	total cost per unit			752.67	395.96
3)				model 145	model 212
	price per unit			753.3	396.28
	cost per unit			752.67	395.96
	profit(loss)per unit			0.63	0.32