Ch 04 Ex 4-7 Saved Help Save C 1 Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 10 points 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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) eBook Process Activity Components Changeover Machining Setups Quantity 750 7,680 100 Hint Finishing Welding Inspecting Rework Overhead Cost Driver $456,500 Number of batches 300, 400 Machine hours 226,500 Number of setups $983,400 $ 181,200 Welding hours 225,000 Number of inspections 61,850 Rework orders $468,050 $ 135,500 Purchase orders 30,400 Number of units 60,650 Number of units $ 226,550 4,200 770 210 Ask Support Purchasing Providing space Providing utilities 465 6,000 6,000 Print - References 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 2,000 2,000 375 465 2,280 50 140 310 Model 212 4,000 2,200 375 305 5,400 70 155 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 0 Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $120 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ 0 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $760 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. Model 145 Model 212 Market price