Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 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 rote" answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 7,690 140 Finishing Welding Inspecting Rework Overhead Cost $ 458,000 301,600 228,500 $988,100 $ 182,600 231,800 60,50 $ 473,650 $ 136,000 31,050 60,610 $ 227,660 Welding hours Number of inspections Rework orders 3,700 720 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 495 6,300 6.300 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 2,100 1,000 435 465 2,290 70 70 330 Model 212 4,200 2,700 435 255 5,400 70 Ba 165 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $200 for Model 212. Activity Driver Plantwide OH rate Overhead Assigned Model 145 Model 212 Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 3. If the market price for Model 145 is $745 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price Prev 1 of 1 Next