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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 36P: Reducir, Inc., produces two different types of hydraulic cylinders. Reducir produces a major...
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