Answer
1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. |
||||
Total Overhead |
$1,682,310 |
$ 224.31 |
per machine hour |
|
Total machine hours |
7,500 |
Overhead Assigned |
Activity Driver |
Plantwide OH rate |
Total Overhead Cost |
Units Produced |
OH Cost per unit |
Model 145 |
2,300 |
$ 224.31 |
$ 515,913.00 |
1,700 |
$ 303.48 |
Model 212 |
5,200 |
$ 224.31 |
$ 1,166,412.00 |
3,400 |
$ 343.06 |
Model 145 |
Model 212 |
||||
Direct material and Direct Labor cost |
$ 280.00 |
$ 120.00 |
|||
Overhead cost per unit |
$ 303.48 |
$ 343.06 |
|||
Total Cost per unit |
$ 583.48 |
$ 463.06 |
Model 145 |
Model 212 |
|
Market price |
$ 735.00 |
$ 460.00 |
Total Cost per unit |
$ 583.48 |
$ 463.06 |
Profit (Loss) per unit |
$ 151.52 |
$ (3.06) |
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their c...
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. (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...
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.) Process Activity Components Changeover Machining...
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. Process Activity Overhead Cost Driver Quantity Components Changeover $ 477,950 Number of batches 790 Machining 379,790 Machine hours 8,150 Setups 298,400 Number of setups 160 $ 1,156,140 Finishing Welding $ 366,980...
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. Process Activity Overhead Cost Driver Quantity Components Changeover $ 477,950 Number of batches 790 Machining 379,790 Machine hours 8,150 Setups 298,400 Number of setups 160 $ 1,156,140 Finishing Welding $ 366,980...
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 Process Activity Components Changeover Overhead Cost Driver Ouantity 553,350 388,680 222,000 $1,164,030 Number of batches Machine hours Number of setups 930 8,200 120 Machining Setups 5,200 885 250 Finishing Welding $...
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. (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 Components Changeover Machining...
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.) Process Activity Components Changeover Machining...
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. (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 Components Changeover Machining...
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. (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...
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. (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 Components Changeover Machining...