Driver Machining Setups Number of setups 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 Components Changeover Overhead Cost $ 476,000 306,000 229,000 $1,011,000 Machine hours Quantity 910 7.880 40 Number of batches Finishing welding $ 154,000 Welding hours 5,208 Inspecting Rework 231,000 62,500 Number of inspections 820 Rework orders 210 5477,500 Support Purchasing $135,000 Purchase orders 501 Providing space 38,500 Number of units 5,210 Providing utilities 65,000 Number of units 5,218 238,500 Additional production information concerning its two product lines follows Model 145 Units produced Model 212 2,100 3,110 Welding hours 1,000 4,200 Batches 455 Number of inspections 455 510 310 Machine hours 2,550 5,330 20 20 120 90 314 167 Rework orders Purchase orders Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department Assign costs to the support department based on number of purchase orders 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $110 for Model 212 3. If the market price for Model 145 is $1,250 and the market price for Model 212 is $270, determine the profit or loss per unit for each model