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 rate" answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Quantity 890 7,770 100 Finishing Welding Inspecting Rework Overhead Cost Driver $ 456,000 Number of batches 300, 800 Machine hours 229,000 Number of setups $ 985,800 $ 182,900 Welding hours 229,000 Number of inspections 60,300 Rework orders $ 472,200 $ 136,500 Purchase orders 30, 300 Number of units 60, 380 Number of units $ 227,180 4,600 820 160 Support Purchasing Providing space Providing utilities 555 4,200 4,200 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 1,400 1,800 445 495 2,320 50 110 370 Model 212 2,800 2,800 445 325 5,450 50 50 185 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 $250 for Model 145 and $160 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 $ Model 212 $ Model 145 Model 212 0 3. If the market price for Model 145 is $744 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