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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

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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 Components Changeover Machining Setups Quantity 730 7,660 40 Finishing Welding Inspecting Rework Overhead Cost Driver $ 457,000 Number of batches 301,000 Machine hours 228,500 Number of setups $ 986,500 $ 181,000 Welding hours 229,000 Number of inspections 61,950 Rework orders $ 471,950 $ 135,000 Purchase orders 30,150 Number of units 60,050 Numar of units $ 225, 200 5,600 795 230 Support Purchasing Providing space Providing utilities 480 6,300 6,300 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 2,100 2,400 365 505 2,310 20 150 320 Model 212 4,200 3,200 365 290 5,350 20 80 160 Required: 1. Using a plantelde 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 $190 for Model 145 and $180 for Model 212 Activity Driver Plantwide OH rate Overhead Assigned Model 145 Model 212 Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 3. the market price for Model 145 is $756 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price

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