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 Overhead Cost Driver Quantity Components Changeover $ 450,500 Number of batches 750 Machining 301,400 Machine hours 7,660 Setups 229,000 Number of setups $ 980,900 Finishing Welding $ 181,900 Welding hours 5,200 Inspecting 227,000 Number of inspections 815 Rework 60,350 Rework orders $ 469, 250 Support Purchasing $ 135,500 Purchase orders Providing space 31,000 Number of units 4,200 Providing utilities 60, 340 Number of units 4,200 $ 226,840 80 230 465 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Model 145 1,400 1,800 375 Model 212 2,800 3,400 375 315 5,350 40 500 2,310 40 2 Machining Setups Machine hours Number of setups 7,660 Pinishing Welding Inspecting Rework 301,400 229,000 $ 980,900 $ 181,900 227,000 60,350 $ 469,250 $ 135,500 31,000 60,340 $ 226,840 Welding hours Number of inspections Rework orders 5,200 815 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units -Book 465 4,200 4,200 Hint Print 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 1,400 1,800 375 500 2,310 40 110 310 Model 212 2,800 3,400 375 315 5,350 40 120 155 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead.costs $ 450.5000 $ 58.81 Machine hours 7,6601 Check my work Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. Overhead costs $ 450.500 $ 58.81 Machine hours 7,660 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 $170 for Model 212. Overhead Assigned Plantwide OH rate Units Produced Activity Driver 450.500 OH Cost per unit Model 145 Model 212 Total Overhead Cost $ 0 $ 0 Model 212 Model 145 2,310.00 $ 0 $ 2.310.00 3. If the market price for Model 145 is $737 and the market price for Model 212 is $440, determine the profit or loss per unit for each model. Model 145 Model 212 Market price $ 2,310.00