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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 mechanic systems in their components department. The mechanical systems are combined with the housir assembly in its finishing department. The activities, costs, and drivers associated with these tv- manufacturing processes and the production support process follow Process Activity Components Changeover Machining Setups Overhead Cost Driver $ 476,000 Number of batches 303,000 Machine hours 234 000 Number of setups Quantity 750 7980 $1,013,000 Finishing $ 6,500 Welding Inspecting Rework 188,000 Welding hours 234,000 Number of inspections 60,500 Rework orders 885 220 $ 482,500 Support $ 537 Purchasing Providing space Providing utilities 135,000 Purchase orders 37,000 Number of units 70,000 Number of units 4,830 4.830 $ 242,000 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 1,800 2,400 375 515 2,650 Model 212 3,030 4,100 375 370 5,330 170 358 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 (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Total Overhead Cost Model 212 Activity Driver Departmental OH Rate Components Finishing Support 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 and $140 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead per unit Total cost per unit 3. If the market price for Model 145 is $2,150 and the market price for Model 212 is $260, determine the profit or loss per unit for each model.(Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit