# ACCOUNTING

 2 Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1. (Round your intermediate calculations to 2 decimal places and final answers to whole dollar amount. Omit the “\$” sign in your response.)

 Product Molding Trimming Total overhead cost Part A27C Part X82B

 Product Overhead cost Part A27C Part X82B

4.

Exercise 17-9 Using the plantwide Overhead rate to assess prices L.O. A1, P1

 Real 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 \$ 500,000 Number of batches 800 Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 \$ 1,004,000 Finishing Welding \$ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 \$ 465,300 Support Purchasing \$ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 \$ 232,000

 Additional production information concerning its two product lines follows.

 Model 145 Model 212 Units produced 1,500 3,500 Welding hours 800 2,200 Batches 400 400 Number of inspections 400 300 Machine hours 1,800 4,200 Setups 60 60 Rework orders 160 140 Purchase orders 300 150

 Required 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “\$” sign in your response.)

 Product Overhead cost Model 145 Model 212

 2 Determine the total cost per unit for each products line if the direct labor and direct materials costs per unit are \$250 for Model 145 and \$180 for Model 212. (Round your intermediate and final answers to 2 decimal places. Omit the “\$” sign in your response.)

 Product Total cost Model 145 Model 212

 3 Assume if the market price for Model 145 is \$800 and the market price for Model 212 is \$470, determine the profit or loss per unit for each model. (Input all amounts as positive values. Round your intermediate and final answers to 2 decimal places. Omit the “\$” sign in your response.)

 Model 145 Model 212

rev: 03-04-11

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