t mheducationcom 7 Homework Help Way Cool produces two diffe

t mheducation.com 7 Homework Help 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. 350,550 umber of batches 392,904 s, 560 Machining Setups Machine hours 600 umber of setups 935,054 Tinishing Welding 371,110 Wlding hours 321,750 umber of inspectiona Inspecting 66 150 Revork orders Support Purchasing 15 Purchase Providing space Providing utilities 337 50 tumber ot units 8,700 ,700 31.100Number of units Additional production information concerning its two product lines follows welding hours 100 Wunber of inspections ,250 Purchase orde Required 1. Using ABc, compute the overhead cost per unit for each product line ne the total cost per unit for each product line if the direct labor and direct materials costs per unit are $180 for and $121 for Model 212 3. If the market pri each model ice for Model 145 is $498.41 and the market price for Model 212 is $310.21, determine the profit or loss per unit for 20 F4 FS Fs 19 F1O

Solution

Model 149 Model 212 Activity Expected cost Expected Activity Activity rate Activity OH assigned Activity OH assigned Components Changeover 390,550.00 730 535 365 195275 365 195275 machining 392,904.00 8560 45.9 3250 149175 5310 243729 Setups 151600 80 1895 40 75800 40 75800 Finishing Welding 371110 5900 62.9 1800 113220 4100 257890 Iinspecting 321,750 825 390 495 193050 330 128700 Rework 66,150 270 245 150 36750 120 29400 Support: Purchasing 153415 503 305 335 102175 168 51240 Providing space 168780 8700 19.4 2900 56260 5800 112520 Total Overheads 921705 1094554 Divide: Number of unts 2900 5800 OH cost per unit 317.83 188.72 Req 2: Unit cost Model 145 Model 212 Material and labour cost 180 121 OH cost per unit 317.83 188.72 Unit cost 497.83 309.72 Req 3: Product margin Model 145 Model 212 Selling price 498.41 310.21 Less: unit cost 497.83 309.72 Profit per unit 0.58 0.49