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	Activity	Overhead Cost				Driver	Quantity
Components	Changeover		$	454,500		Number of batches	850
	Machining			302,000		Machine hours	7,580
	Setups			226,000		Number of setups	200
			$	982,500
Finishing	Welding		$	180,300		Welding hours	4,300
	Inspecting			220,000		Number of inspections	725
	Rework			60,350		Rework orders	230
			$	460,650
Support	Purchasing		$	134,500		Purchase orders	525
	Providing space			31,800		Number of units	5,400
	Providing utilities			60,290		Number of units	5,400
			$	226,590

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,800			3,600
Welding hours		1,000			3,300
Batches		425			425
Number of inspections		475			250
Machine hours		2,330			5,250
Setups		100			100
Rework orders		150			80
Purchase orders		350			175

Required: