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Exercise 17-11 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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 $ 559,650 Number of batches 910 Machining 392,117 Machine hours 8,290 Setups 376,000 Number of setups 200 $1,327,767 Finishing Welding $ 238,650 Welding hours 4,300 Inspecting 305,300 Number of inspections 860 Rework 56,400 Rework orders 240 $ 600, 350 Support Purchasing 162,565 Purchase orders 533 Providing space 31,700 Number of units 8,400 Providing utilities 127,900 Number of units 8,400 $ 322,165 $ 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 2,800 1,000 455 460 2,950 100 130 355 Model 212 5,600 3,300 455 400 5,340 100 110 178 Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model 145 Activity driver Overhead Incurred assigned Activity Incur $ 559,650 392,117 370,000 910 Number of batches 8,290 Machine hours 200 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utities $ 238.650 305,300 56,400 4,300 Welding hours 860 Inspections 240 Rework orders $ 102,565 533 Purchase orders 8.400 Units 159,600 $ 0 Total overhead cost Total units produced Overhead cost per unit Required Required 2 > Complete this question by entering your answers in the tabs below. 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 $230 for Model 145 and $117 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. 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 $230 for Model 145 and $117 for Model 212. 3. If the market price for Model 145 is $594.33 and the market price for Model 212 is $337.48, 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 I If the market price for Model 145 is $594.33 and the market price for Model 212 is $337.48, 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