Question

25)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.  ProcessActivityOverhead CostDriverQuantity  Components  Changeover $480,000 Number of batches710      Machining  304,000 Machine hours8,490      Setups  233,000 Number of setups200              $1,017,000             Finishing  Welding $192,000 Welding hours5,000      Inspecting  226,000 Number of inspections880      Rework  63,500 Rework orders240              $481,500              Support  Purchasing $143,000 Purchase orders477      Providing space  38,000 Number of units5,180      Providing utilities  65,000 Number of units5,180              $246,000               Additional production information concerning its two product lines follows.   Model 145Model 212  Units produced 2,100  3,080   Welding hours 2,000  3,000   Batches 355  355   Number of inspections 480  400   Machine hours 3,150  5,340   Setups 100  100   Rework orders 130  110   Purchase orders 318  159  Required:1.Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders.(Round your intermediate calculations and per unit cost answers to 2 decimal places.)        

 2.Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 and $150 for Model 212.(Round your intermediate calculations and cost per unit answers to 2 decimal places.)

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