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. Process Activity Components Changeover Machining Setups Overhead Cost Driver $ 468,000 Number of batches 312,000 Machine hours 232,000 Number of setups Quantity 770 8,540 200 $1,012,000 Finishing $ Welding Inspecting Rework 184,000 Welding hours 220,000 Number of inspections 61,500 Rework orders 5,400 850 200 $ 465,500 Support Purchasing Providing space Providing utilities $ 143,000 Purchase orders 36,500 Number of units 67,000 Number of units 513 5,030 5,030 $ 246,500 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 2,000 1,200 385 470 3,250 100 120 342 Model 212 3,030 4,200 385 380 5,290 100 80 171 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders.(Round your intermediate calculations and per unit cost answers to 2 decimal places.) Components department Finishing department Support department 0 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Activity Driver Departmental OH Rate Total Overhead Cost 0 Model 212 Components Finishing Support 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $140 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead per unit Total cost per unit 3. If the market price for Model 145 is $1,700 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.(Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit