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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 Machining Setups Quantity 870 7,590 180 $978.700 Pinishing Welding Inspecting Rework Overhead Cost Driver $ 450, 500 Number of batches 301,200 Machine hours 227,000 Number of setups 978.700 $ 180,500 Welding hours 233,000 Number of inspections 60,750 Revork orders $ 474,250 $ 135,500 Purchase orders 30,200 Number of units 60,560 Number of units $226,260 23.0 4,300 730 170 Support 503 Purchasing Providing space Providing utilities Additional production information concerning its two product lines follows. Model 145 1,900 2,200 Model 212 3,800 2,100 Units produced Welding hours Batehes Number of inspections Machine hours Setups Revork orders Purchase orders 255 5.300 2.290 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 $230 for Model 145 and $170 for Model 212. Activity Driver Plantwide OH rate Overhead Cost Units Produced OH Cost per unit 1 Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is 5744 and the market price for Model 212 is $430, determine the profit or loss per unit for each model Model 145 Model 212 Market price

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