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 Overhead Cost Driver $ 455,000 Number of batches 301,000 Machine hours 229,000 Number of setups Quantity 750 7,730 220 $ 985,000 Finishing $ 5,100 Welding Inspecting Rework 182,900 Welding hours 222,000 Number of inspections 60,850 Rework orders por unspections Sorteo 790 220 $ 465,750 Support $ Purchasing Providing space Providing utilities 138,000 Purchase orders 32,150 Number of units 60,280 Number of units 548 4,800 4,800 $ 230,430 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 1,600 2,200 375 495 2,330 110 160 365 Model 212 3,200 2,900 375 295 5,400 110 60 183 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 0 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $230 for Model 145 and $160 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost o Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. Assume if the market price for Model 145 is $760 and the market price for Model 212 is $440, determine the profit or loss per unit for each model. Model 145 Model 212 Market price