Way Cool produces two different models of air conditioners. The company produces the mechanical systems...
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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.)
Process
Activity
Overhead Cost
Driver
Quantity
Components
Changeover
$
455,000
Number of batches
830
Machining
301,600
Machine hours
7,730
Setups
226,000
Number of setups
100
$
982,600
Finishing
Welding
$
182,400
Welding hours
4,300
Inspecting
232,000
Number of inspections
760
Rework
60,900
Rework orders
150
$
475,300
Support
Purchasing
$
135,000
Purchase orders
495
Providing space
31,250
Number of units
4,800
Providing utilities
60,470
Number of units
4,800
$
226,720
Additional production information concerning its two product lines follows.
Model 145
Model 212
Units produced
1,600
3,200
Welding hours
1,000
3,300
Batches
415
415
Number of inspections
470
290
Machine hours
2,280
5,450
Setups
50
50
Rework orders
70
80
Purchase orders
330
165
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