Business, 16.10.2020 14:01 codyclay

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 458,000 Number of batches 810
Machining 307,000 Machine hours 7,650
   Setups 232,000 Number of setups 160

997,000

Finishing   Welding 188,000 Welding hours 4,100
  Inspecting 231,000 Number of inspections 835
  Rework 62,000 Rework orders 150

481,000

  Support   Purchasing 143,000 Purchase orders 525
  Providing space 32,000 Number of units 5,020
  Providing utilities 61,000 Number of units 5,020

236,000

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 2,000 3,020
Welding hours 1,200 2,900
Batches 405 405
Number of inspections 465 370
Machine hours 2,350 5,300
Setups 80 80
Rework orders 100 50
Purchase orders 350 175

Required:
Determine departmental overhead rates and compute the overhead cost per unit for each product line.

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Way Cool produces two different models of air conditioners. The company produces the mechanical syst...

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