Exercise 17-8 Using departmental overhead rates to assess prices LO P2 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. Quantity 810 8, 380 120 overhead Cost Driver Process Activit Components Changeover $ 470,000 Number of batches 305, 000 Machine hours Machining Setups 230,000 $1,005,000 Number of setups S 184,000 Welding hours 6, 200 885 190 Finishing Welding Inspecting Rework 233,000 65,000 482,000 umber of inspections Rework orders 519 4, 610 4, 610 Support Purchasing $ 135, 000 33, 500 65,000 $ 233, 500 Purchase orders Number of units Number of units Providing space Providing utilities Additional production information concerning its two product lines follows Model 145 Mode1 212 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 1, 600 2,200 405 495 3,050 60 150 346 3,010 , 405 390 s, 330 60 40 173