need help completing it and solving Exercise 4.9 Using ABC to assess prices LO P

Question

need help completing it and solving

Exercise 4.9 Using ABC to assess prices LO P3 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 Components Changeover Overhead Cost Driver Quantity Machining Setups s 525,35 Number of batches 68,799Machine hours 790 8,870 60 109.8 Number of setups 5 1,003,949 332,520 elding hours 58.30 Rework orders 5,100 855 228 Finishing welding Inspecting Rewor 269 325 Number of inspections 5 660, 145 upport Purchasing S 174,048 Purchase orders 31,300 Number of units 112 700 Number of units 458 7,500 2, 500 Providing utilities 5 318,840 Additional production information concerming its two product ines follows

Explanation / Answer

Activity Rate Model 145 Model 212 Process Activity Overhead Cost Driver Qty Rate Factor Activity Diver Incurred Overhead Assigned Activity Diver Incurred Overhead Assigned Components Changeover 525350 No. of Batches 790 665 Per Batch 395 262675 395 262675 Machining 368799 Machine Hours 8070 45.7 Per MH 2750 125675 5320 243124 Setups 109800 No. of Setups 60 1830 Per Setup 30 54900 30 54900 1003949 Finishing Welding 332520 Welding Hours 5100 65.2 Per Welding H 2200 143440 2900 189080 Inspecting 269325 No. of Inspections 855 315 Per Inspecting I 485 152775 370 116550 Rework 58300 Rework Order 220 265 Per Rework Order 130 34450 90 23850 660145 Support Purchasing 174040 Purchases Order 458 380 Per Purchasing O 305 115900 153 58140 Providing Space & Utilities 144000 No. of Units 7500 19.2 Per Unit 2500 48000 5000 96000 318040 Total Overhead 937815 Total Overhead 1044319 Units Produced 2500 Units Produced 5000 Model 145 Model 212 1 Overhead Cost PU 375.13 Overhead Cost PU 208.86 Units Produced 2500 5000 Welding Hours 2200 2900 Batchs 395 395 2 Total Product Cost Model 145 Model 212 No. of Inspections 485 370 Direct Material & Labor Cost 240.00 114.00 Machine Hours 2750 5320 Overhead Cost PU 375.13 208.86 No. of Setups 30 30 Total 615.13 322.86 Rework Order 130 90 Purchases Order 305 153 3 Model 145 Model 212 Sales Price Per Unit 615.76 323.21 Cost Per Unit 615.13 322.86 Profit (Loss) Per Unit 0.63 0.35

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.