Way Cool produces two different models of air conditioners The company produces
ID: 2557268 • 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 930 $ 544,050 Number of batches 364,856 Machine hours 7,730 40 74,000 Number of setups $ 982.906 Finishing Welding 5,100 305,625 63,250 Number of inspections Rework orders 815 230 $ 692,725 Support Purchasing 480 $ 158,400 Purchase orders 30.300 Number of units Providing space Providing utilities 32,400 Number of units 3,300 $ 221,100 Addtional production Information concerming its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 1,100 2.000 465 2.200 3,100 465 2,450 20 130 320 5,280 20 100 160 uired: 1. Using ABC, compute the overhead cost per unit for each product line. (Round your intermediate calculations and round activity rate and cost per unit answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate dri S544,050930 Number of batches 585.00 per batch 364,856 74,000 7,730 Machine hours 47.20 per machine hour 40 Setups S 1,850.00 per setup Finishing 323,850 5,100 Wolding hours 305,625 63,250 815 Inspections 230 Rework orders 63.50 per welding hour 375 001 per inspection 275.00 per rework orderExplanation / Answer
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Model 145 Model 212 Activity Expected Costs Expected Activity Activity Rate Activity Drivier Incured Overhead Assigned Activity Drivier Incured Overhead Assigned Components Changeover 544050 930 Batches 585.00 per batch 465 272025 465 272025 Machining 364856 7,730 Machine hours 47.20 per machine hour 2450 115640 5280 249216 Setups 74000 40 Setups 1,850.00 per setup 20 37000 20 37000 Finishing Welding 323850 5,100 Welding Hours 63.50 per welding hour 2000 127000 3100 196850 Inspecting 305625 815 Inspections 375.00 per inspection 495 185625 320 120000 Rework 63250 230 Rework orders 275.00 per rework order 130 35750 100 27500 Support Purchasing 158400 480 Purchase Orders 330.00 per purchase order 320 105600 160 52800 Providing space and utilities 62700 3,300 Units 19.00 per unit 1100 20900 2200 41800 Total Overhead Cost 899540 997191 Total Units Produced 1100 2200 Overhead Cost per unit 817.76 453.27Related Questions
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