0 Saved Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 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 Components Activity Changeover Machining Setups Overhead Cost $ 500,000 Driver Quantity 800 6,000 120 Number of batches 279,000 225,000 Machine hours Number of setups $1,004,000 Finishing Welding Inspecting Rework $ 180,300 Welding hours 3,000 210,000 Number of inspections 700 75,000 Rework orders -300 $ 465,300 Support Purchasing Providing space Providing utilities $-135,000 Purchase orders 450 32,000 Number of units 5,000 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 68 Rework orders 160 140 Purchase orders 300 150 Required: 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 Rework orders 160 Purchase orders 300 888 60 60 140 150 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs Machine hours 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. Overhead Assigned Model 145 Model 212 O Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 0 $ 0 Model 145 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. 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. Overhead costs Machine hours 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. Overhead Assigned Model 145 Model 212 0 Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 0 $ Model 145 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. Model 145 Model 212 Market price