Exercise E Way Cool produces two different models of air con

Exercise E 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 Overhead Quantity Cost 500,000 Number of batches 800 279,000 Machine hours Changeover Setups 000 Number of setups tp000 Finishing Welding S 180,300 Welding hours 210,000 Number of 700 Rework 75,000 Rework oeders Support Purchasing 135,000 Purchase orders Number of units Number of units Providing space 32.000 65,000 Additional production information concerning its two product lines follows. Model Model Units produced 1,500 3.500 800 2.200 Welding hours Number of Machine hours 1,800 60 4200 60 Rework orders Purchase orders 140 300 . Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 22. 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 market price for Model 145 is S820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model

Solution

1 Model 145 Model 212 Machine hours                                     (A) 1800 4200 Overhead rate per machine hour (B) 283.55 283.55 Overhead allocated         (A x B)      (C) 510390 1190910 Units produced                                     (D) 1500 3500 Factory overhead per unit (C/D)   (E) 340.26 340.26 Working: Components departent overhead 1004000 Finishing department overhead 465300 Support overhead 232000 Total overhead 1701300 Total machine hours 6000 Overhead rate per machine hour 283.55 2 Model 145 Model 212 Direct material and direct labor per unit 250.00 180.00 Overhead per unit 340.26 340.26 Total cost per unit 590.26 520.26 3 Model 145 Model 212 Total cost per unit 590.26 520.26 Market price 820.00 480.00 Profit / (Loss) -229.74 40.26