Part two

Exercise 4-8 Using departmental overhead rates to assess prices LO P2 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 tivity Process Components Changeover Overhead Cost Driver $ 452,000 Number of batches Machining Setups 302,000Machine hours 229 0Number of setups 899 7,720 60 $ 983,000 s 186,000 Welding hours Finishing Welding Inspecting Rework 4,800 820 250 222,000Number of inspections 63,500Rework orders 5 471,500 Support Providing space Providing utilities s 135,000 Purchase orders Number of units Number of units 37,000 68,000 483 4,950 4,950 s 240,000 Additional production information concerning its two product lines follows