Question: Need help only for requirement 1 (where there is red a cross mark) Way Cool produces two different models of air conditioners. The company produces
Need help only for requirement 1 (where there is red a cross mark)


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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 910 8,710 120 Finishing Welding Inspecting Rework Overhead Cost $ 466,000 306, 000 231,000 $1,003,000 $ 190,000 234,000 64,000 $ 488,000 S 143,000 34,500 67,000 $ 244,500 Welding hours Number of inspections Rework orders 4,700 835 170 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 850 4,850 Additional production information concerning its two product lines follows. Model 145 1,800 1,400 455 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 212 3,050 3,300 455 320 5,360 3,350 99 167 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $1,550 and the market price for Model 212 is $290, determine the profit or loss per unit for each model. Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less $ 115.15 per machine hour 1,003.000 8,710 Components department Overhead costs Machine hours Finishing department Overhead costs Welding hours Support department Overhead costs Number of purchase orders $ 103.83 per welding hour $ 488,000 4,700 $ 488.02 per purchase pe order $ 244,500 501 Model 145 Components Finishing Support Total Overhead Cost Units Produced Activity Driver 12 X 12 12 Departmental OH Rate $ 115.15 $ 103.83 $ 488.02 Total Overhead Cost $ 1,382 $ 1,246 5,856 8,484 Model 212 Components Finishing Support Total Overhead Cost Units Produced Activity Driver 12 12 12 Departmental OH Rate $ 115.15 $ 103.83 $ 488.02 Total Overhead Cost 1,382 % 1,246 5,856 8,484
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