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Firefox File Edit View History Bookmarks Tools Window Help ? 53% 1D Fri 6:05 PM

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Question

Firefox File Edit View History Bookmarks Tools Window Help ? 53% 1D Fri 6:05 PM Atika Ishtiaq E Ch 04 Ex 4- way Coal produces two differe X © Solved: Using the plantwide ov. × 'C How to Calculate 0 erhead Co X + https:!/newconnect.mheducation.com/flow/connect.html ...Search Ch 04 Ex 4-7 6 Help Save & Exit Submit Saved Check my work 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.) 12 points Quantity Process Activity Components Changeover Overhead Cost Driver 459,500 300,400 228,000 $987,900 Number of batches Machine hours Number of setupa eBoak Setups Hint $ 181,100 226,000 60,300 467,400 Helding hours Number of inspections Rework orders Finishing Welding 3,700 95 Ask Inspecting Rework 220 Print 480 4,200 4,200 Support Purchasing Providing space Providing utilitiea 30,850 60,380 $ 226,730 Purchase orders Number of units Number of units Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding houra Batches Number of inapections Machine hours Setupa Rework orders Purchase orders 1,400 1,000 435 510 2,320 90 140 320 2,800 2,700 435 285 5,300 90 80 160 Prev 1 of 1 Next 1014

Explanation / Answer

Req 1 Plant wide OH rate Overheads cost 1682030 220.74 per machine hour Machine hours 7620 . Req 2: Overheads assigned Activity OH rate OH cost Units OH cost driver Produced Per unit Model 145 2320 220.74 512116.8 1400 365.8 Model 212 5300 220.74 1169922 2800 417.83 Req 3: Total Manufacturing Cot per unit Model 145 Model 212 material and labour 240 150 OH 365.8 417.83 Total cost per unit 605.8 567.83 Req 4: Model 145 Model 212 Seling price 733 460 Less: Cost per unit 605.8 567.83 Profit/(loss) per unit 127.2 -107.83

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