Way Cool produces two different models of air conditioners. The company produces the mechanical systems in...

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Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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 Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Overhead Cost $ 538,450 386,937 223,200 $1,148,587 $ 249,750 Driver Machine hours Quantity 890 8,430 120 Number of batches Number of setups Welding hours 4,500 322,000 Number of inspections 920 45,000 Rework orders 180. $616,750 5 196,875 Purchase orders 525 31,200 118,650 $346,725 Number of units 8,100 Number of units 8,100 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,700 5,400 Welding hours 1,600 2,900 Batches 445 445 Number of inspections 520 400 Machine hours 3,150 5,200 Setups 60 60 Bework orders 90 90 Purchase orders 350 175 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $116 for Model 212 3. If the market price for Model 145 is $590.99 and the market price for Model 212 is $322.32, determine the profit or loss per unit for each model Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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 Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space Providing utilities Overhead Cost $ 538,450 386,937 223,200 $1,148,587 $ 249,750 Driver Machine hours Quantity 890 8,430 120 Number of batches Number of setups Welding hours 4,500 322,000 Number of inspections 920 45,000 Rework orders 180. $616,750 5 196,875 Purchase orders 525 31,200 118,650 $346,725 Number of units 8,100 Number of units 8,100 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,700 5,400 Welding hours 1,600 2,900 Batches 445 445 Number of inspections 520 400 Machine hours 3,150 5,200 Setups 60 60 Bework orders 90 90 Purchase orders 350 175 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $116 for Model 212 3. If the market price for Model 145 is $590.99 and the market price for Model 212 is $322.32, determine the profit or loss per unit for each model

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1 Using ABC compute the overhead cost per unit for each product line To compute the overhead cost pe... View the full answer