Exercise 17-11 Using ABC to assess prices LO P3 DOOR 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 Proces Activity Overhead Cost Driver Quantity Components Changeover 1438,450 Number of batches 790 Machining 353,260 Machine hours 7.630 Setups 100, 500 Humber of setup 60 $ 91,219 Finishing Welding $ 271,600 Welding hours Inspecting 336,300 Number of inspections BSS Rework 62500 Rework orders 250 $675,400 Support Purchasing $ 168,360 Purchase orders Providing space 32,100 Number of units 4,800 Providing utilities 58.140 Number of units 4,880 $ 258,600 4,000 nes 488 Additional production information concerning its two product lines follows 3,200 Units produced Welding hours Batch Thamber of inspections Machine hours Setup Hework orders Purchase orders 1,600 1.000 95 SOS 2,150 395 30 5,200 170 30 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 $240 for Model 145 and $112 for Model 212 3. If the market price for Model 145 is $759.81 and the market price for Model 212 is $426.37, determine the profit or loss per unit for each model AR y die Overhead A Nutches 35320 100 100 M Sa hind wideo 271000 330 300 4000 W specto Rework por Purchase Providing and its S 1080 50200 Puhe 4300 Total cost Total produced Overhead cost per Cra Saying Good-Byepot 3. If the market price for Model 145 is $759.81 and the market price for Model 212 is $42637.determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. 125 Required 1 Required 2 Required Hint Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $112 for Model 212(Round your final answers to 2 decimal places.) Model 145 Model 212 Weference Materals and Labor per unit Overhead cost per unit Total cost per unit 7 3. If the market price for Model 145 is $759.81 and the market price for Model 212 is $426,37 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 If the market price for Model 145 is $759.81 and the market price for Model 212 is $426,37, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places) Model 145 Model 212 Price per unit Cost per unit Prolit (loss) per unit
