Exercise 4-7 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 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. (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.) Quantity 710 Process Activity Components Changeover Machining Setups 7.770 220 Pinishing 3,700 Welding Inspecting Rework Overhead Cost Driver $ 459,000 Number of batches 301,600 Machine hours 229,000 Number of setups $ 989,600 $ 182,400 Welding hours 233,000 Number of inspections 61,000 Rework orders $ 476,400 $ 135,000 Purchase orders 31,700 Number of units 60,200 Number of units $ 226,900 765 210 Support Purchasing Providing space Providing utilities 480 4,200 4,200 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 1,200 355 500 2.320 110 90 320 Model 212 2.800 2.500 355 265 5.450 110 120 160 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 $240 for Model 145 and $200 for Model 212. Overhead Assigned Activity Driver Plantwide OH Total Overhead Cost Units Produced OH Cost per unit rate Model 145 Model 212 . Model 145 Model 212 3. If the market price for Model 145 is $738 and the market price for Model 212 is $500, determine the profit or loss per unit for each model. Model 145 Model 212 Market price