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Homework answers / question archive / Way Cool produces two different models of air conditioners

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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 8,140 220 Finishing ta Welding Inspecting Rework Overhead Cost $ 622,050 381,766 400,400 $1,404,216 348, 920 325, 325 62,100 $ 736,345 $ 146,400 31,200 78,810 $ 256,410 Welding hours Number of inspections Rework orders 5,200 845 270 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 5,700 5,700 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,800 435 475 2,850 110 150 Model 212 3,800 3,400 435 370 5,290 110 120 163 325 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $180 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $768.60 and the market price for Model 212 is $456.13, determine the profit or loss per unit for each model. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Ove incurred ass Activity Expected Costs Expected Activity Activity Rate $ 622,050 870 Number of batches 8,140 Machine hours 381,766 400,400 220 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 348,920 325,325 62,100 5,200 Welding hours 845 Inspections 270 Rework orders $ 146,400 110,010 488 Purchase orders 5,700 Units Total overhead cost Total units produced Overhead cost per unit < Required 1 Required 2 > Model 212 river Overhead d assigned Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $180 for Model 145 and $119 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit < Required 1 Required 3 > Required 1 Required 2. Required 3 If the market price for Model 145 is $768.60 and the market price for Model 212 is $456.13, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit < Required 2 Required 3