Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different mode ls of air conditioners. The company produces the mechanical systems in their 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.) Activity Overhead Cost Driver Quantity Process Components Changeover $456,000 Number of batches 770 Machine hours Machining 301,000 7,700 Number of setups Setups 228,500 40 985,500 Welding hours Number of inspections Welding Finishing $182,400 4,600 Inspecting 232,000 840 Rework 61,750 Rework orders 200 476,150 Purchasing $137,500 Purchase orders 555 Support Providing space 30,900 Number of units 5,100 Number of units Providing utilities 60,480 5,100 $228,880 Additional production information concerning its two product lines follows Model 145 Model 212 3,400 Units produced Welding hours 1,700 2,200 2,400 Batches 85 385 Number of inspections 520 320 Machine hours 2,300 5,400 Setups Rework orders 20 20 120 80 Purchase orders 370 185 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $110 for Model 212 OH Cost per unit Activity Driver Plantwide OH rate Units Produced Overhead Assigned Total Overhead Cost Model 145 Model 212 S 0 Model 145 Model 212 3. If the market price for Model 145 is $738 and the market price for Model 212 is $510, determine the profit or loss per unit for each model Model 145 Model 212 Market price