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 Overhead Cost Driver $ 453,500 Number of batches 300, 800 Machine hours 228,500 Number of setups $ 982,800 Quantity 830 7,670 120 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 4,700 775 140 $ 182,300 224,000 61,500 $ 467,800 $ 134,500 32,350 60,600 $ 227,450 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 518 4,800 4,800 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 1,600 1,200 415 510 2,270 Model 212 3,200 3,500 415 265 5,400 60 60 60 80 345 173 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 219 Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $180 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 $758 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price