Refer to the information in Exercise 4-7 to answer the following requirements. In Exercise 4-7 Way Cool

Question:

Refer to the information in Exercise 4-7 to answer the following requirements.
In Exercise 4-7
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.

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 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 $250 for Model 145 and $180 for Model 212.
3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Comment on the results.