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Firefox File Edit View History Bookmarks Tools Window Help 53% C%), Sun 10:32 AM Atika Ishtiaq a E hcc canvas-Google SearchX Connect C Accounting question | Chegg.c x+ https://newconnect.mheducation.com/flow/connect.html ? a Search Ch 04 Ex 4-9 6 Help Save & Exit Submit Saved Check my work Exercise 4-9 Using ABC to assess prices LO P3 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 points drivers associated with these two manufacturing processes and the production support process follow. Proceas Activity Components Changeover eBook Overhead Coat Driver Quantity of batchea 830 8,210 200 $ 593.450 Nuber Machining Setups 376,018 376, 000 $1,345,468 Machine houra Number of setups Hint Ask Finishing Welding Inspecting Rework 294,800 47,250 $ 718,470 376,420 elding houra Number of inspections Rework orders 5,900 880 210 Print Purchasing Providing space Providing utilities $ 174, 825 Purchase orders Number of units Nuaber of units S55 7,800 7,800 support 113,780 $ 319,905 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inepections Machine houre Setups Rework ordere 2, 600 1 , B00 415 510 2,B50 100 100 5,200 4,100 415 370 5,360 100 Prev 1 of 1 Next Hill 1021Explanation / Answer
Model 145
Model 212
Activity
Expected Cost
Expected Activity
Actvity Rate
Activity Driver incurred
O/H Assigned
Activity Driver incurred
O/H Assigned
Components
Changeover
593450
830
No of Batches
715
415
296725
415
296725
Machining
376018
8210
Machine Hrs
45.8
2850
130530
5360
245488
Setups
376000
200
Setups
1880
100
188000
100
188000
Finishing
Welding
376420
5900
Welding Hrs
63.8
1800
114840
4100
261580
Inspecting
294800
880 Inspections
335
510
170850
370
123950
Rework
47250
210
Rework Orders
225
100
22500
110
24750
Support
Purchasing
174825
555
Purchase Orders
315
370
116550
185
58275
Providing Space & Utilities
145080
7800
Units
18.6
2600
48360
5200
96720
Total O/H Cost (A)
----
----
----
----
1088355
----
1295488
Total Units Produced (B)
----
----
----
----
2600
----
5200
O/H Cost Per unit (A/B)
-----
-----
-----
-----
418.60
-----
249.13
(2)
Model 145
Model 212
Material & Labour Per Unit
200
120
O/H Cost per unit
418.60
249.13
Total Cost per unit
618.60
369.13
(3)
Model 145
Model 212
Price per unit
619.16
369.63
Cost per unit
618.60
369.13
Profit/(Loss) per unit
0.56
0.50
Model 145
Model 212
Activity
Expected Cost
Expected Activity
Actvity Rate
Activity Driver incurred
O/H Assigned
Activity Driver incurred
O/H Assigned
Components
Changeover
593450
830
No of Batches
715
415
296725
415
296725
Machining
376018
8210
Machine Hrs
45.8
2850
130530
5360
245488
Setups
376000
200
Setups
1880
100
188000
100
188000
Finishing
Welding
376420
5900
Welding Hrs
63.8
1800
114840
4100
261580
Inspecting
294800
880 Inspections
335
510
170850
370
123950
Rework
47250
210
Rework Orders
225
100
22500
110
24750
Support
Purchasing
174825
555
Purchase Orders
315
370
116550
185
58275
Providing Space & Utilities
145080
7800
Units
18.6
2600
48360
5200
96720
Total O/H Cost (A)
----
----
----
----
1088355
----
1295488
Total Units Produced (B)
----
----
----
----
2600
----
5200
O/H Cost Per unit (A/B)
-----
-----
-----
-----
418.60
-----
249.13
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