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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 Activity Overhead Cost D Quantity Components Changeover $500,250 Number of batches 870 Machining 282,720 Machine hours 8,220 Setups 112,200 Number of setups 60 $995,170 Finishing Welding $212,760 Welding hours 5,200 Inspecting 211,400 Number of inspections 865 Rework 42,500 Rework orders 170 $667,660 Support Purchasing $182,150 Purchase orders 555 Providing space 20,200 Number of units 4,200 Providing utilities 50,440 Number of units 4,200 $262,790

Additional production information concerning its two product lines follows.

Model 145 Model 212 Units produced 1,400 2,800 Welding hours 2,400 2,900 Batches 435 435 Number of inspections 525 240 Machine hours 3,050 5,270 Setups 30 20 Rework orders 110 60 Purchase orders 370 185

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 $240 for Model 14! and $122 for Model 212 3. If the market price for Model 145 is $92210 and the market price for Model 212 is $469.64. determine the profit or loss per unit fo each model.

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If the market price for Model 145 is $922.10 and the market price for Model 212 is $469.64, 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 , .

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