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 cost per unit are 220 for model 145 and 113 for model 212.3. If the market price for model 145 is 1016.29 and the price for model 212 is 580.23, determine the profit or loss under 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 Overhead Cost Driver Quantity Components Changeover $ 514, 650 Number of batches 730 Machining 405, 756 Machine hours 8, 670 Setups ODE 'BSE Number of setups 140 $1, 178, 706 Finishing Welding S 281, 430 Welding hours 5, 300 Inspecting a39, a75 Number of inspections 90S Rework 37, 600 Rework orders 160 $ 658, 405 Support Purchasing $ 170, 850 Purchase orders 510 Providing space 21, 800 Number of units 2, 600 Providing utilities 35, 520 Number of units a, 600 S 238, 170 Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced 1, 200 2, 400 Welding hours 1, 200 4, 100 Batches 365 365 Number of inspections 495 410 Machine hours 3, 250 5, 320 Setups 70 70 Rework orders 110 50 Purchase orders 340 170