## Question

###### Way Cool produces two different models of all conditioners. The company produces the mechanical systems in...

way Cool produces two different models of all 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 Activity Componente Changeover Machining Setups Overhead Driver Cost Quantity Number of $ 500,000 BOO batches 279,000 Machine hours 6,000 225,000 Number of 120 setups $1.000.000 100,300 Welding hours 3,000 Number of 210,000 700 inspections 75,000 Rework orders 300 $ 465.300 $ 135,000 Purchase orders 450 32,000 Number of units 5,000 Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Number of units 5,000 65,000 232,000 $ Additional production Information conceming its two product Ines follows. Units produced Welding hours Batches Number o inspections Machine hours Setups Rework orders Purchase orders Model 145 Model 212 1,500 3.500 800 2,200 400 400 300 1,800 4,200 400 140 160 300 150

Additional production Information concering its two product lines follows. 1.500 Model 145 Model 212 3,500 2,200 400 400 300 4,200 Units produced Welding hours Batches Sumber of inspections Machine hours Setups Rework orders Purchase ordern 400 160 300 150 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $250 for Model 145 and $180 for Model 212. Activity Driver Plantwide Total Overhead OH rate Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model Model 145 Model 212 Market price

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