subject
Business, 26.02.2020 05:59 laurynrobinson21

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.

Process Activity Overhead Cost Driver Quantity
Components Changeover $500,000 Number of- 800
batches
Machining 279,000 Machine hours 6,000
Setups 225,000 Number of- 120
setups
$1,004,000
Finishing Welding $180,300 Welding hours 3,000
Inspecting 210,000 Number of- 700
inspections
Rework 75,000 Rework orders 300
$465,300
Support Purchasing $135,000 Purchase orders 450
Providing space 32,000 Number of units 5,000
Providing utilities 65,000 Number of units 5,000
$232,000

Additional production information concerning its two product lines follows:

Model 145 Model 212
Units produced 1,500 3,500
Welding hours 800 2,200
Batches 400 400
Number of inspections 400 300
Machine hours 1,800 4,200
Setups 60 60
Rework orders 160 140
Purchase orders 300 150

Required:
1. Using ABC, 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.
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.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 16:00
Five times the sum of a number and 27 is greater then or equal to six times the of that number and 26. what is the solution set to this proportion?
Answers: 1
question
Business, 21.06.2019 23:00
Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.
Answers: 2
question
Business, 22.06.2019 14:40
Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.
Answers: 3
question
Business, 22.06.2019 15:40
As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage
Answers: 1
You know the right answer?
Way Cool produces two different models of air conditioners. The company produces the mechanical syst...
Questions
question
Mathematics, 05.07.2020 14:01