26)

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	Overhead Cost	Driver	Quantity
Components	Changeover		$	561,150		Number of batches	870
	Machining			408,752		Machine hours	8,660
	Setups			360,000		Number of setups	200
			$	1,329,902
Finishing	Welding		$	415,170		Welding hours	6,300
	Inspecting			284,700		Number of inspections	780
	Rework			34,500		Rework orders	150
			$	734,370
Support	Purchasing		$	175,950		Purchase orders	510
	Providing space			30,500		Number of units	3,300
	Providing utilities			33,190		Number of units	3,300
			$	239,640

Additional production information concerning its two product lines follows.

	Model 145	Model 212
Units produced		1,100			2,200
Welding hours		2,400			3,900
Batches		435			435
Number of inspections		460			320
Machine hours		3,350			5,310
Setups		100			100
Rework orders		100			50
Purchase orders		340			170

Required:
1.	Using ABC, compute the overhead cost per unit for each product line.(Round your intermediate calculations and round activity rate and cost per unitanswers to 2 decimal places.)

2.	Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $122 for Model 212.(Round your final answers to 2 decimals places.)

3.	If the market price for Model 145 is $1,270.71 and the market price for Model 212 is $700.28, determine the profit or loss per unit for each model.(Round your final answers to 2 decimals places.)