Exercise 04-11 Using ABC to assess prices LO P3 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 Machining Setups Driver Number of batches Machine hours Number of setups Quantity 910 8,440 160 Finishing 5,309 Welding Inspecting Rework Overhead Cost $ 532,350 395,836 303,200 $1,231,386 $ 353,510 292,875 49,000 $ 695,385 $ 219,450 32,100 79.500 $ 322,050 Welding hours Number of inspections Rework orders 200 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 570 5,400 5,400 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 1,800 1,400 455 475 3,150 Model 212 3,600 3,980 455 350 5,290 150 380 50 190 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 $210 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $79111 and the market price for Model 212 is $448.93, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate 532,350 395,836 303,200 910 Number of batches 8,440 Machine hours 160 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 353,510 292,875 49,000 5,300 Welding hours 825 Inspections 200 Rework orders 219,450 102,600 570 Purchase orders 5,400 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 > Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials 145 and $114 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $791.11 and the market price for Model 212 is $448.93, 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