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.) Process Components Changeover Activity Overhead Cost $ 500,000 Driver Quantity Number of batches Machining Setups 279,000 225,000 Machine hours Number of setups 800 6,000 120 $1,004,000 Finishing Welding $ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 $ 465,300 Support Purchasing $ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 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 Model 212 1,500 3,500 800 2,200 400 400 400 300 1,800 4,200 60 60 160 140 300 150 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs Machine hours O per machine hour 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. Overhead Assigned Model 145 Model 212 0 Activity Driver Plantwide OH rate Units Total Overhead Cost Produced OH Cost per unit 0 0 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