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Gaved Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department The mechanical systems are combined

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Gaved 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 Overhead Cost Driver Quantity Components Changeover $ 458,000 Number of batches 730 Machining 307,000 Machine hours 8,560 Setups 229,000 Number of setups 180 $994,000 Finishing Welding $ 188,000 Welding hours 5,700 Inspecting 224,000 Number of inspections 800 Rework 63,500 Rework orders 270 $ 475,500 Support Purchasing $ 135,000 Purchase orders 495 Providing space 36,500 Number of units 4,700 Providing utilities 64,000 Number of units 4,700 $ 235,500 ce Additional production information concerning its two product lines follows. Model 145 Units produced Model 212 1,600 3,100 Welding hours 1,600 4,100 Batches 365 365 Number of inspections Machine hours 3,250 5,310 Setups 90 90 Rework orders 120 Purchase orders 330 165 480 150 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Bose 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 $240 for Model 145 and $190 for Model 212 3. If the market price for Model 145 is $875 and the market price for Model 212 $270, determine the profit or loss per unit for each model Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Recrired 2 >

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