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.)

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.) Additional production information concerning its two product lines follows. 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 labor and direct materials costs per unit are $210 for Model 145 and $170 for Model 212. \begin{tabular}{|c|l|l|l|l|l|} \hline Overhead Assigned & Activity Driver & Plantwide OH rate & Total Overhead Cost & Units Produced & OH Cost per unit \\ \hline Model 145 & & & $ & 0 & \\ \hline Model 212 & & & $ & 0 & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline & Model 145 & Model 212 \\ \hline & & \\ \hline 0 & & \\ \hline & & \\ \hline \end{tabular} 3. If the market price for Model 145 is $755 and the market price for Model 212 is $470, determine the profit or loss per unit for each model. \begin{tabular}{|l|r|r|} \hline & Model 145 & Model 212 \\ \hline Market price & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}