Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,900			3,800
Welding hours		1,000			3,000
Batches		395			395
Number of inspections		455			360
Machine hours		2,550			5,260
Setups		90			90
Rework orders		160			110
Purchase orders		310			155

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 $200 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $684.13 and the market price for Model 212 is $407.67, determine the profit or loss per unit for each model.

Exercise 17-9 Using ABC to assess prices LO P3 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 Quantity 790 Overhead Cost Driver $ 422,650 Number of batches 367,070Machine hours 329,400 Number of setups Process Activity Components Changeover Machining Setups 7,810 180 $1,119,120 4,000 815 270 $ 234,800 Welding hours 297,475 Number of inspections 66,150 Rework orders Finishing Welding Inspecting Rework s598,425 183,675 Purchase orders 31,400 Number of units 465 Support Purchasing 5,780 Providing space Providing utilities 5,780 Number of units 77,470 $ 292,545