mechanical Way Cool produces two different models of air conditioners. The company produces 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.

Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment of 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 $250 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.

Process Driver Components Number of batches Activity Changeover Machining Setups Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Quantity 800 6,000 120 Machine hours Number of setups Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 3,000 700 300 $ 180,300 210,000 75,000 $ 465,300 $ 135,000 32,000 65,000 $ 232,000 Support 450 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 5,000 5,000 Additional production information concerning its two product lines follows. Model 145 1,500 800 400 Model 212 3,500 2,200 400 300 4,200 60 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 400 1,800 60 160 140 300 150 Required 1 Required 2 Required 3 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.) Show less 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 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 $250 for Model 145 and $180 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 cost per unit Total cost per unit Required 1 Required 2 Required 3 If the market price for Model 145 is $820 and the market price for Model 212 is $480, 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