Question

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.) Activity Changeover Machining Setups Process Components Overhead Cost $452,see 301,6ee 228,000 $982,100 Driver Number of batches Machine hours Number of setups Quantity 77e 7,530 1ee Finishing Welding Inspecting $ 181,300 234,000 60,65e $ 475,950 Welding hours Number of inspections Rework orders 4,eee 715 Rework 200 Purchasing Providing space Providing utilities $ 134,5ee зе, 350 60,730 510 Support Purchase orders Number of units 4,800 4,800 Number of units $225,580 Additional production information concerning its two product lines follows. Model 212 3,200 2.800 Model 145 Units produced Weldine hours 1,600 1.200 3 of 3 Next Prev 1026 PM 6/16/2015 o search lenovo

Answer 1

1
Overhead costs	1683630	223.59	per machine hour
Machine hours	7530
2
Overhead Assigned	Activity Driver	Plantwide OH rate	Total Overhead Cost	Units Produced	OH Cost per unit
Model 145	2280	223.59	509785	1600	318.62
Model 212	5250	223.59	1173848	3200	366.83
Total manufacturing cost per unit:	Model 145	Model 212
Materials and Labor per unit	240.00	180.00
Overhead	318.62	366.83
Total manufacturing cost	558.62	546.83
3
	Model 145	Model 212
Market price	760.00	500.00
Manufacturing cost per unit	558.62	546.83
Profit(loss) per unit	201.38	-46.83
Note: Answers might vary +1 due to rounding off