Question

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 QuantityComponents Changeover $ 453,500 Number of batches 770Machining 301,800 Machine hours 7,560Setups 227,000 Number of setups 140$ 982,300Finishing Welding $ 182,300 Welding hours 4,100Inspecting 226,000 Number of inspections 735Rework 60,200 Rework orders 200$ 468,500Support Purchasing $ 137,500 Purchase orders 570Providing space 31,400 Number of units 6,000Providing utilities 60,950 Number of units 6,000$ 229,850

Answer 1

By supplying the right amount of funds