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 850 7,790 120 Finishing Welding Inspecting Rework Overhead Cost Driver $ 455,000 Number of batches 300, 800 Machine hours 227,000 Number of setups $ 982,800 $ 180, 400 Welding hours 226,000 Number of inspections 60,150 Rework orders $ 466,550 $ 134,500 Purchase orders 30,900 Number of units 60,970 Number of units $ 226,370 3,000 820 150 Support Purchasing Providing space Providing utilities 495 6,600 6,600 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 2,200 800 425 490 2,340 60 100 330 Model 212 4,400 2,200 425 330 5,450 60 165 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs 0 per machine hour Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $300 for Model 145 and $110 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 3. If the market price for Model 145 is $731 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. Model 145 Model 212 Market price M