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Chapter 4 Homework He Save& Exit 6 Way Cool produces two different models of air

ID: 2539047 • Letter: C

Question

Chapter 4 Homework He Save& Exit 6 Way Cool produces two different models of air condtioners. The company produces the mechanical systems in ther department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and cturing processes and the production support process follow (Loss amounts should be ass ociabed with indicated with a minus sign, Round your intermediabe calculations and round "Cost per unit and OH rate answers to 2 decimal 7.75 Purchase order 3, 70 production information concerming its two product iollows

Explanation / Answer

Req 1: Plant wide overhead rate: Estimated overeheads / machine hours (978700+468150+228440) / 7750 MH = $ 216.17 per MH Req 2: Overhead assigned activity driver OH rate Total OH Units Produced OH cost per unit Model 145 2300 216.1665 497183 1900 261.68 Mmodel 212 5450 216.1665 1178107 3800 310.03 Model 145 Model 212 Material and labour cost 300 120 OH cost 261.68 310.03 UNIt Cost 561.68 430.03 Req 3: Model 145 Mdel 212 Selling price 738 470 Less: Units cost 561.68 430.03 Ggross margin 176.32 39.97

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