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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.) Activity Components Changeover Machining Setups Process Overhead Cost Driver Quantity 800 $ 500,000 279,000 225,000 $1,004,000 Number of batches Machine hours 6,000 120 Number of setups Finishing Welding Inspecting $ 180,300 210,000 75,000 $ 465,300 Welding hours Number of inspections 3,000 700 Rework Revork orders 300 Purchasing Providing space Providing utilities Support Purchase orders Number of units Number of units 135,000 450 32,000 65,000 $ 232,000 5,000 5,000 Additional production information concerning its two product lines follows. Model 145 Model 212 1,500 3,500 2,200 400 300 Units produced Welding hours 800 400 400 Batches Number of inspections Machine hours 1,800 60 160 300 4,200 60 Setups Revork orders Purchase orders 140 150

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.) Activity Components Changeover Machining Setups Process Overhead Cost Driver Quantity 800 $ 500,000 279,000 225,000 $1,004,000 Number of batches Machine hours 6,000 120 Number of setups Finishing Welding Inspecting $ 180,300 210,000 75,000 $ 465,300 Welding hours Number of inspections 3,000 700 Rework Revork orders 300 Purchasing Providing space Providing utilities Support Purchase orders Number of units Number of units 135,000 450 32,000 65,000 $ 232,000 5,000 5,000 Additional production information concerning its two product lines follows. Model 145 Model 212 1,500 3,500 2,200 400 300 Units produced Welding hours 800 400 400 Batches Number of inspections Machine hours 1,800 60 160 300 4,200 60 Setups Revork orders Purchase orders 140 150

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.) Process Activity Components Changeover Machining Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Driver Quantity Number of batches Machine hours Number of setups 800 6,000 Setups 120 Finishing Welding Inspecting $ 180,300 210,000 75,000 $ 465,300 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections J,000 700 Rework Rework orders 300 Support Purchasing Providing apace Providing utilities Purchase orders Number of units 450 5,000 5,000 Number of units Additional production information concerning its two product lines follows. Model 145 1,500 800 Model 212 Units produced Welding hours Batches 3,500 2,200 400 400 400 300 Number of inspections Machine hours Setups Rework orders Purchase orders 1,800 60 160 300 4,200 60 140 150
Transcribed Image Text: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.) Process Activity Components Changeover Machining Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Driver Quantity Number of batches Machine hours Number of setups 800 6,000 Setups 120 Finishing Welding Inspecting $ 180,300 210,000 75,000 $ 465,300 135,000 32,000 65,000 $ 232,000 Welding hours Number of inspections J,000 700 Rework Rework orders 300 Support Purchasing Providing apace Providing utilities Purchase orders Number of units 450 5,000 5,000 Number of units Additional production information concerning its two product lines follows. Model 145 1,500 800 Model 212 Units produced Welding hours Batches 3,500 2,200 400 400 400 300 Number of inspections Machine hours Setups Rework orders Purchase orders 1,800 60 160 300 4,200 60 140 150
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. OH Cost per Units Produced Plantwide OH Activity Driver Overhead Assigned Total Overhead Cost unit rate 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
Transcribed Image Text: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. OH Cost per Units Produced Plantwide OH Activity Driver Overhead Assigned Total Overhead Cost unit rate 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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