Exercise 4.8 Using departmental overhead rates to assess prices LO P2 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 ActivityOverhead Cost Driver Components Changeover Quantity Machining Setups 480,000 Number of batches 306,800 Machine hours 234,800 Number of setups 7,858 $1,820,800 Finishing Welding 188,800 lding hours 222,800 Number of inspections 4,100 Inspecting Rework 61,500 S 471,500 135,000 Rework orders upport Purchasing Providing space Providing utilities Purchase orders 33,000 Number of units 1,000 Number of units 4,810 4,810 5 229,000 Additional production information concerning its two product lines follows Model 145 1,700 Mode1 212 3,110 3,300 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 375 500 2,550 5,300 120 378 189