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Firefox File Edit View History Bookmarks Tools Window Help 53% C%), Sun 10:32 AM Atika Ishtiaq a E hcc canvas-Google SearchX Connect C Accounting question | Chegg.c x+ https://newconnect.mheducation.com/flow/connect.html ? a Search Ch 04 Ex 4-9 6 Help Save & Exit Submit Saved Check my work Exercise 4-9 Using ABC to assess prices LO P3 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 points drivers associated with these two manufacturing processes and the production support process follow. Proceas Activity Components Changeover eBook Overhead Coat Driver Quantity of batchea 830 8,210 200 $ 593.450 Nuber Machining Setups 376,018 376, 000 $1,345,468 Machine houra Number of setups Hint Ask Finishing Welding Inspecting Rework 294,800 47,250 $ 718,470 376,420 elding houra Number of inspections Rework orders 5,900 880 210 Print Purchasing Providing space Providing utilities $ 174, 825 Purchase orders Number of units Nuaber of units S55 7,800 7,800 support 113,780 $ 319,905 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inepections Machine houre Setups Rework ordere 2, 600 1 , B00 415 510 2,B50 100 100 5,200 4,100 415 370 5,360 100 Prev 1 of 1 Next Hill 1021

Solution

Model 145

Model 212

Activity

Expected Cost

Expected Activity

Actvity Rate

Activity Driver incurred

O/H Assigned

Activity Driver incurred

O/H Assigned

Components

Changeover

593450

830

No of Batches

715

415

296725

415

296725

Machining

376018

8210

Machine Hrs

45.8

2850

130530

5360

245488

Setups

376000

200

Setups

1880

100

188000

100

188000

Finishing

Welding

376420

5900

Welding Hrs

63.8

1800

114840

4100

261580

Inspecting

294800

880 Inspections

335

510

170850

370

123950

Rework

47250

210

Rework Orders

225

100

22500

110

24750

Support

Purchasing

174825

555

Purchase Orders

315

370

116550

185

58275

Providing Space & Utilities

145080

7800

Units

18.6

2600

48360

5200

96720

Total O/H Cost (A)

----

----

----

----

1088355

----

1295488

Total Units Produced (B)

----

----

----

----

2600

----

5200

O/H Cost Per unit (A/B)

-----

-----

-----

-----

418.60

-----

249.13

(2)

Model 145

Model 212

Material & Labour Per Unit

200

120

O/H Cost per unit

418.60

249.13

Total Cost per unit

618.60

369.13

(3)

Model 145

Model 212

Price per unit

619.16

369.63

Cost per unit

618.60

369.13

Profit/(Loss) per unit

0.56

0.50

				Model 145	Model 212
Activity	Expected Cost	Expected Activity	Actvity Rate	Activity Driver incurred	O/H Assigned	Activity Driver incurred	O/H Assigned
Components
Changeover	593450	830 No of Batches	715	415	296725	415	296725
Machining	376018	8210 Machine Hrs	45.8	2850	130530	5360	245488
Setups	376000	200 Setups	1880	100	188000	100	188000
Finishing
Welding	376420	5900 Welding Hrs	63.8	1800	114840	4100	261580
Inspecting	294800	880 Inspections	335	510	170850	370	123950
Rework	47250	210 Rework Orders	225	100	22500	110	24750
Support
Purchasing	174825	555 Purchase Orders	315	370	116550	185	58275
Providing Space & Utilities	145080	7800 Units	18.6	2600	48360	5200	96720
Total O/H Cost (A)	----	----	----	----	1088355	----	1295488
Total Units Produced (B)	----	----	----	----	2600	----	5200
O/H Cost Per unit (A/B)	-----	-----	-----	-----	418.60	-----	249.13