Exercise 17-8 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 its 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 Overhead Cost Driver Quantity Components Changeover $ 459,500 Number of batches 830 Machining 301,400 Machine hours 7,620 Setups 227,500 Number of setups 220 $ 988,400 Finishing Welding $ 182,200 Welding hours 4,300 Inspecting 224,000 Number of inspections 820 Rework 62,050 Rework orders 190 $ 468,250 Support Purchasing $ 135,000 Purchase orders Providing space 32,150 Number of units 5,100 Providing utilities 60,470 Number of units 5, 100 $ 227,620 488 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 1,700 2,000 415 515 2,320 110 140 325 Model 212 3,400 2,300 415 385 5,300 110 50 163 Required: 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 Inbor and direct materials costs per unit are $180 for Model 145 and $200 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 5753 and the market price for Model 212 is $470, determine the profit or loss per unit for each model Model 212 Market price Model 145