1 Exercise 17-11 Using ABC to assess prices LO P3 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 Driver Number of batches Machine hours Number of setups Quantity Bee 6,eee 12e Finishing Welding Inspecting Rework Overhead cost $ See, ce 279,00 225,000 $1,4, eee $ 18e, see 21e, Bee 75 BBB $ 465,300 $ 135,000 32,800 Welding hours Number of inspections Rework orders 3.00 700 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 450 5, eee S. $ 232,000 Additional production information concerning its two product lines follows Model 212 2,200 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,500 800 480 480 1,80 60 160 30 4,200 66 140 150 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 Complete this question by entering your answers in the tabs below. Model 212 3, See 2,200 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework onders Purchase orders Model 145 1. See 400 40 400 1,800 be Ibe 30 4. 140 ise 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 of 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 212 Activity diver Overhead Expected Costs Expected Activity Model 145 Activity driver Overhead incurred assigned Activity Rate Components Changeover Machining Setups 5 500.000 $ 270.000 225.000 BOO Number of batches 6,000 Machine hours 120 Setups 62500 per batch 48.50 per machine hour 1.875.00 persetup 5 5 180 300 210.000 75.000 3,000 Welding hours 700 Inspections 300 Rework orders S $ 5 60.10 per welding hour 300.00 per inspection 250.00 per work order Inspecting Rework Support Purchasing Providing space and votes $ 135.000 OT.000 450 Purchase orders 5.000 Units S 5 300.00 per purchase order 10.40 per unit Total overheads Total units produced Overheados por un 5 Required Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Activate W Go to Settings HR Windows O E . e Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit Windows A