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 Components changeover Machining Setups Quantity 750 7,640 40 Finishing Welding Inspecting Rework Overhead Cost Driver $ 459,000 Number of batches 300,200 Machine hours 227,500 Number of setups $985,700 $ 100, 600 Welding hours 220,000 Number of inspections 60,400 Fework orders $ 461,000 $ 137,500 Purchase orders 30, 250 Number of units 60, 880 Number of units $ 228,630 4,800 810 250 Support Purchasing Providing space Providing utilities 563 4, 800 4, 800 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 1,600 3,200 1,600 3,200 375 375 470 2,340 5,300 20 20 150 100 375 1BB 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 Model 145 Model 212 3. If the market price for Model 145 is $746 and the market price for Model 212 is $460, determine the profit or loss per unit for each model. Model 145 Model 212 Market price