Exercise 17-7 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 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 Components Changeover Machining Setups Overhead Cost Driver Quantity Process 500,000 279,000 Number of batches 800 Machine hours 6,000 Number of setups 225,000 120 $1,004,000 Finishing Welding Inspecting Welding hours Number of inspections 180,300 210,000 75,000 3,000 700 Rework orders Rework 300 465,300 Purchasing Providing space Providing utilities Purchase orders Support 135,000 32,000 65,000 450 Number of units 5,000 5,000 Number of units 232,000 Additional production information concerning its two product lines follows. Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches 1,500 3,500 800 2,200 400 400 Number of inspections 400 300 Machine hours 1,800 4,200 Setups Rework orders 60 60 160 140 Purchase orders 300 150 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $250 for Model 145 and $180 for Model 212. OH Cost per unit Activity Driver Plantwide OH Units Produced Overhead Assigned Total Overhead Cost rate Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $820 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