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 $ 451,000 Number of batches 730 Machining 301,600 Machine hours 7,580 Setups 227,000 Number of setups 60 $ 979,600 Finishing Welding $ 182,700 Welding hours 4,000 Inspecting 223,000 Number of inspections 805 Rework 60,700 Rework orders 240 $ 466,400 Support Purchasing $ 137,500 Purchase orders 473 Providing space 30,200 Number of units 6,600 Providing utilities 60,300 Number of units 6,600 228,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,200 4,400 Welding hours 1,800 2,200 Batches 365 365 Number of inspections 470 335 Machine hours 2,330 5,250 Setups 30 30 Rework orders 140 100 Purchase orders 315 158 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 $290 for Model 145 and $130 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 SO Model 212 SO 0 Model 145 Model 212 3. If the market price for Model 145 is $748 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Market price Model 145 Model 212