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 B10 7.680 120 Finishing Welding Inspecting Rework Overhead Cost Driver $ 456,000 Number of batches 300,800 Machine hours 227,000 Number of setups $ 983,800 $ 180, 700 Wolding hours 234,000 Number of inspections 60.150 Rework orderd 5 474,850 $137,000 Purchase orders 32,400 Number of units 60.000 Number of unita $ 230,200 4,000 785 180 Support Purchasing Providing space Providing utilities 563 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 2,000 1,200 405 485 2.280 60 110 Model 212 4,000 2.800 405 300 5.400 60 70 188 375 Required: Using plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line Overhead costs 1.688.850 $ 219.90 per machine hour Machine hours 7.650 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product lino. Overhead costs $ 1.688,850 $ 219.90 per machine hour Machine hours 7,680 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $120 for Model 212. Overhead Assigned Model 145 Model 212 Activity Driver Plantwide OH rate Total Overhead Cost 2,280 $ 219.90 $ 501,372 5,400 $ 219.90 $ 1,187,460 Units Produced OH Cost per unit 2,000 $ 250.69 4.000 $ 296.87 Model 145 Model 212 Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost 250.69 296.87 3. If the market price for Model 145 is $732 and the market price for Model 212 is $440, determine the profit or los per unit for each model Model 145 Model 212 Market price