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 $ 456,500 Number of batches 910 Machining 302,000 Machine hours 7,550 Setups 228,500 Number of setups 180 $ 987,000 Finishing Welding $ 181,600 Welding hours 5,500 Inspecting 224,000 Number of inspections 735 Rework 61,950 Rework orders 250 $ 467,550 Support Purchasing $ 136,000 Purchase orders 473 Providing space 31,350 Number of units 5,700 Providing utilities 60,090 Number of units 5,700 $ 227,440 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 1,900 2,000 455 465 2,300 90 150 315 Model 212 3,800 3,500 455 270 5,250 90 100 158 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 $180 for Model 145 and $150 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 $ $ 0 0 Model 145 Model 212 0 3. If the market price for Model 145 is $752 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