Exercise 4-9 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 930 8,530 80 6,200 Finishing Welding Inspecting Rework Overhead Cost $ 562,650 390,674 150, 800 $1,104,124 $ 333,560 273,600 49,450 $ 656,610 $ 180,000 30,800 123,100 $ 333, 900 Welding hours Number of inspections Rework orders 855 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 480 8,100 8,100 Additional production information concerning its two product lines follows. Model 145 2,700 2,000 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 212 5,400 4,200 465 360 5,280 40 70 160 Required: 1. Using ABC, 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 $180 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $542.62 and the market price for Model 212 is $320.24, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate 562,650 390,674 150,800 930 Number of batches 8,530 Machine hours 80 Setups Components Changeover Machining Setups finishing Welding Inspecting Rework Support Purchasing Providing space and utilities 333,560 273,600 49,450 6,200 Welding hours 855 Inspections 230 Rework orders $ 180,000 153,900 480 Purchase orders 8,100 Units Total overhead cost Total units produced Overhead cost per unit 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 $180 for Model :145 and $113 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $542.62 and the market price for Model 212 is $320.24, 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