Exercise 17-11 Using ABC to assess prices LO P3 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, Process Activity Overhead cost Driver Quantity Components Changeover $ 637,050 Number of batches 930 Machining 402, 480 Machine hours 8,600 Setups 36, 900 Number of setups 20 $1,076, 430 Finishing Welding 293,400 Welding boura 4.500 Inspecting 255,000 Number of inspection Rework 50,600 Rework orders 230 599,000 Support Purchasing 191,625 Purchase orders Providing space 30,700 Number of units Providing utilities 03/300 Number of units 6,000 $ 305,625 $ S 525 3.100 Additional production information concerning its two product lines follows: Model 145 Model 212 Units produced 2,000 4,000 Welding hours 1,400 Batches 465 465 Number of inspections 370 Machine Tour 3,250 5,350 Setup 10 150 Purchase orders 350 Rework ordere 10 80 175 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspection Machine hours Setups Rowork orders Purchase orders Model 145 2,000 1,400 465 480 3,250 10 150 350 Model 212 4,000 3,100 465 370 5,350 10 80 175 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 $220 for Model 145 and $116 for Model 212 3. If the market price for Model 145 ls $682,06 and the market price for Model 212 is $380.94, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred insigned Expected Costs Expected Activity Activity Rate Activity incum $ 637,050 402.480 38.900 930 Number of batches 8.800 Machine hours 20 Setups $ $ $ 685.00 per batch 46.80 per machine hour 1,845.00 per setup 465 3,250 10 18.450 Activity Components Changeover Machining Selupe Finishing Welding Inspecting Rework Support Purchasing Providing space and the $ 293,400 255.000 50.600 4,500 Welding hours 850 Inspections 230 Rework orders 5 $ $ 65.20 per welding hour 300.00 per inspection 220.00 per rework order $ 191,625 114,000 525 Purchase orders 6000 Units S $ 365.00 per purchase order 19.00 per unit Total overhead cost Total units produced Overhead cost per unit 0 Required 2 nach product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhoad Incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Activity Activity Rate 465 930 Number of batches 8,600 Machine hours 29 Setups $ $ $ 685.00 per batch 46,80 per machine hour 1,845,00 per setup 3,250 10 465 $ 5,350 10 318,525 250,380 18.450 18,450 4,500 Welding hours 850 Inspections 230 Rework orders $ $ $ 65.20 per welding hour 300.00 per inspection 220,00 per rework order 525 Purchase orders 6,000 Units $ $ 365.00 per purchase order 19.00 per unit Total overhead cost Total unito produced Overhead cost per unit $ 0 S Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $116 for Model 212. (Round your final answers to 2 decimal places Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 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 $682.06 and the market price for Model 212 is $380.94, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Modol 212 Price per unit Cost per unit Profit (loss) per unit Required 2