Ch 04 Ex 4.9 Saved 1 Exercise 04-11 Using ABC to assess prices LO P3 8 points Skipped Driver eBook 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 Quantity Components Changeover $ 655,650 Number of batches 930 Machining 359, 397 Machine hours 7,830 Setups 376,000 Number of setups 200 $1,391,047 Finishing Welding $ 363,960 Welding hours 5,400 Inspecting 302,100 Number of inspections 795 Rework 27,600 Rework orders 120 $ 693,660 Support Purchasing $ 180,900 Purchase orders 540 Providing space 31, 200 Number of units 5,100 Providing utilities 65,700 Number of units 5,100 $ 277,800 100 Hint Ask Print Additional production information concerning its two product lines follows. References Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 2,400 465 465 2,550 100 80 360 Model 212 3,400 3,000 465 330 5,280 100 40 180 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 $190 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $862.70 and the market price for Model 212 is $471.11, 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 decimal places.) Model 145 Activity driver Overhead incurred assigned Expected Costs Activity Model 212 Activity driver Overhead incurred assigned Expected Activity Activity Rate $ 655,650 930 Number of batches 7,830 Machine hours 359,397 376,000 200 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 363,960 302,100 27,600 5,400 Welding hours 795 Inspections 120 Rework orders $ 540 Purchase orders 180,900 96,900 5,100 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 > Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $112 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit If the market price for Model 145 is $862.70 and the market price for Model 212 is $471.11, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit