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 850 7,690 60 Finishing Welding Inspecting Rework Overhead Cost Driver $ 458,000 Number of batches 300,600 Machine hours 229,000 Number of setups $987,600 $ 181,400 Welding hours 90 Number of inspections 61,850 Rework orders $ 464,250 $ 135,500 Purchase orders 32,150 Number of units 60,260 Number of units $ 227,910 5,500 825 260 Support Purchasing Providing space Providing utilities 480 5,488 5,400 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setuns Model 145 1,800 2,200 425 495 2,290 30 Model 212 3,600 3,300 425 330 5,400 30 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 1.679.760 $ 218.43 per machine hour Machine hours 7,690 2. Determine the total cost per unit for each product line If the direct labor and direct materials costs per unit are $200 for Model 145 and $160 for Model 212. Overhead Assigned OH Cost per Model 145 Activity Plantwide OH Driver rate Total Overhead Cost 2,290 $ 218.43 $ 500,205 5,400 $ 218.43 $ 1,179,522 Units Produced 1,800 $ 3,600 unit 277.89 327.65 Model 212 Total manufacturing cost per unit: Materials and Labor Model 145 Model 212 Overhead 277.89 327.65 Total manufacturing cost 3. If the market price for Model 145 is $738 and the market price for Model 212 is $500, determine the profit or loss per unit for each model. Model 145 Model 212 Market price