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. Exercise 17-9 Using departmental overhead rates to 2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in

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. Exercise 17-9 Using departmental overhead rates to 2 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. Process Activity Components Changeover Machining Setups 5464.000 Driver Number of batches Machine hours Number of setups Quantity 810 0,320 180 Finishing Welding Inspecting Rework Overhead Cost $ 464,000 313,000 234,000 $1,011,000 190.000 233,000 63,500 486,500 $ 132.000 32,500 63.000 232,500 Welding hours Number of inspections Rework orders .400 865 250 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 4.900 4.900 Additional production information concerning its two product lines follows. Model 145 1,800 Model 212 3.100 3,200 2,200 405 Units produced Welding hours Batehes Number of inspections Machine hours Setup Rework orders Purchase orders 3,050 5,270 130 Required: 1 of 1 Next Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 1 and $180 for Model 212. 3. If the market price for Model 145 is $875 and the market price for Model 212 is $250, determine the profit or loss per unit for ea model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less O Components department Machine hours Number of setups Finishing department O Support department

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