Way Cool produces two different models of air conditioners. The company produces the mechanical systems in...
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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 Overhead Cost $455,500 Activity Changeover Driver Number of batches Quantity Components 850 Machining 301,600 Machine hours 7,680 120 Setups 229,000 Number of setups $986,100 $ 183,000 Welding hours 4,200 Finishing Welding Inspecting 220,000 Number of inspections 730 Rework 61,100 Rework orders 250 $464,100 Support $137,000 Purchase orders 473 Purchasing Providing space Providing utilities 31,050 Number of units 6,300 60,710 Number of units 6,300 $228,760 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours 2,100 4,200 1,600 2,600 Batches 425 425 470 Number of inspections Machine hours. 260 2,330 5,350 Setups 60 60 Rework orders 160 90 Purchase orders. 315 158 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost OH Cost per unit Units Produced 0 Model 145 $ $ Model 212 0 Model 145 Model 212 0 3. If the market price for Model 145 is $758 and the market price for Model 212 is $430, determine the profit or loss per unit for each model. Model 145 Model 212 Market price 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 Overhead Cost $455,500 Activity Changeover Driver Number of batches Quantity Components 850 Machining 301,600 Machine hours 7,680 120 Setups 229,000 Number of setups $986,100 $ 183,000 Welding hours 4,200 Finishing Welding Inspecting 220,000 Number of inspections 730 Rework 61,100 Rework orders 250 $464,100 Support $137,000 Purchase orders 473 Purchasing Providing space Providing utilities 31,050 Number of units 6,300 60,710 Number of units 6,300 $228,760 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours 2,100 4,200 1,600 2,600 Batches 425 425 470 Number of inspections Machine hours. 260 2,330 5,350 Setups 60 60 Rework orders 160 90 Purchase orders. 315 158 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost OH Cost per unit Units Produced 0 Model 145 $ $ Model 212 0 Model 145 Model 212 0 3. If the market price for Model 145 is $758 and the market price for Model 212 is $430, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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