Exercise 17-9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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. Process Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 800 6.000 120 Finishing Welding Inspecting Rework Overhead Cost $ 500,000 279,000 225,000 $1,004,000 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32.000 65,000 $ 232,000 Welding hours Number of inspections Rework orders 3.000 700 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number Onita 450 5,000 5,000 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 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 Activity Expected Costa Expected Activity Model 145 Activity driver Overhaal incurred ansigned Activity Rate Model 212 Activity driver Overhead incurred tigned $ 500,000 279.000 225.000 800 Number of batches 6,000 Machine hours 120 Setups $ $ $ 625.00 per batch 48 50 per machine how 1.875.00 per setup 400 5 1,000 60 250,000 83.700 112,500 400 5 4.2005 60 $ 250 000 195,300 112.500 Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 5 800 180,300 210,000 75.000 3,000 Welding hours 700 Inspections 300 Rework onders 5 $ 60.10 per welding hour 300.00 insan 250.00 per rework ordet 400 160 48,080 120.000 40,000 2,2005 300 5 1405 132,220 90,000 35,000 $ 135,000 97.000 450 Purchase orders 5.000 Units 300 1,500 1505 3.500 5 300.00 per purchase order 19.401 per un Total Overhead COM Total units produced Overeed cost per un 90,000 29,100 $ 773.380 1,500 $ 15,00 45.000 67 900 927.920 Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit