Way Cool produces two different models of air conditioners. The company produces
ID: 2455498 • Letter: W
Question
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 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.)
Using a plantwide overhead rate on machine hours,compute the overheadcost per unit for each product line.
Determine total cost per unit for each product line if the direct labor and direct materials cost per unit are $180 for Model 145 and 120$ for Model 212.
Asume if the market price for Model 145 is $742 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.
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 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.)
Explanation / Answer
Ans-
Calulation of cost per Activity
Calculation of cost per unit & profit or loss per unit
Process Activity Overhead Cost Driver Quantity Activity Amount(Overheadcost/Quantity Components Changeover $ 458000 Number of batches 770 Cost per Batches $ 594.81 Machining 301000 Machine hours 7550 Cost per hour $ 39.87 Setups 226500 Number of setups 120 Cost per setup $ 1887.50 $ 9,85,500 Finishing Welding $ 180800 Welding hours 3600 Cost per wleding hour $ 50.22 Inspecting 231000 Number of inspections 810 Cost per Inspection $ 285.19 Rework 60200 Rework orders 140 Cost per reword order $ 430.00 $ 4,72,000 Support Purchasing $ 134500 Purchase orders 533 Cost per order $ 252.35 Providing space 31700 Number of units 4800 Cost per space $ 6.60 Providing utilities 60020 Number of units 4800 Cost per utility $ 12.50 $ 2,26,220Related Questions
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