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.) 68 Process Activity Components Changeover Machining Setups Quantity 890 7,488 60 Finishing Welding Inspecting Rework Overhead Cost Driver $ 459,000 Number of batches 301,400 Machine hours 228,500 Number of setups $988,900 $ 180,880 Welding hours 234,000 Number of inspections 60,200 Rework orders $475,000 $ 136,500 Purchase orders 31,900 Number of units 60,870 Number of units $229,270 4.ee 760 210 533 Support Purchasing Providing space Providing utilities 6,000 6,000 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 2,800 1,800 445 490 2,280 30 90 355 Model 212 4,000 2,200 445 270 5,200 30 120 178 Required: Purchase orders 355 178 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 $200 for Model 145 and $140 for Model 212. Units Produced Total Overhead Cost OH Cost per unit Overhead Assigned Activity Driver Plantwide OH rate $ 0 Model 145 Model 212 $ 0 Model 145 Model 212 0 3. If the market price for Model 145 is $755 and the market price for Model 212 is $490, determine the profit or loss per unit for each model Model 145 Model 212 Market price