Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 . Sk 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 Components Changeover Quantity $ 450, 500 Number of batches 810 Machining 301,800 Machine hours 7,700 Setups 229, See Number of setups 220 $ 981,800 Finishing Welding $ 181,780 Welding hours 4,100 Inspecting 233,000 Number of inspections 825 Rework 61,150 Rework orders 240 $ 475,850 Support Purchasing $ 134,500 Purchase orders 465 Providing space 30,600 Number of units 6,000 Providing utilities 61,000 Number of units 6,000 $ 226,100 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,eee 1,400 405 485 2,300 110 16e 310 Model 212 4, eee 2,7ee 405 340 5,400 110 80 155 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cont 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 $300 for Model 145 and $190 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 $731 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