1. Using a plantwide overhead rate based on machine hours, 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 $240 for Model 145 and $200 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 op Model 145 Model 212 3. If the market price for Model 145 is $750 and the market price for Model 212 is $510, determine the profit or loss per unit for each model. Model 145 Model 212 Market price 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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 790 7,860 140 Finishing Welding Inspecting Rework Overhead Cost $ 476,000 308,000 229,000 $1,013,000 $ 184,000 224,000 60,500 $ 468,500 $ 145,000 38,000 66,000 $ 249,000 Welding hours Number of inspections Rework orders 5,600 900 190 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 537 4,450 4,450 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,400 1,600 395 520 2,550 70 110 358 Model 212 3,050 4,000 395 380 5,310 70 80 179 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 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 $150 for Model 212. 3. If the market price for Model 145 is $875 and the market price for Model 212 is $310, determine the profit or loss per unit for each model. Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit 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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 830 8,030 120 Finishing Welding Inspecting Rework Overhead Cost $ 551,950 373, 395 219,600 $1,144,945 $ 302,400 354,000 42,000 $ 698,400 $ 168,505 31,900 46,220 $ 246,625 Welding hours Number of inspections Rework orders 4,500 885 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 503 4,200 4,200 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,400 1,000 415 495 2,750 Model 212 2,800 3,500 415 390 5, 280 60 90 335 168 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 $120 for Model 212. 3. If the market price for Model 145 is $893.76 and the market price for Model 212 is $530.36, determine the profit or loss per unit for each model. Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate $ Components Changeover Machining Setups Finishing 551,950 373,395 219,600 830 Number of batches 8,030 Machine hours 120 Setups Welding Inspecting 302,400 354,000 42,000 4,500 Welding hours 885 Inspections 150 Rework orders Rework Support Purchasing Providing space and utilities $ 168,505 503 Purchase orders 4,200 Units Total overhead cost Total units produced Overhead cost per unit Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit