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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 Overhead Cost Driver Quantity Machining Setups s 525,35 Number of batches 68,799Machine hours 790 8,870 60 109.8 Number of setups 5 1,003,949 332,520 elding hours 58.30 Rework orders 5,100 855 228 Finishing welding Inspecting Rewor 269 325 Number of inspections 5 660, 145 upport Purchasing S 174,048 Purchase orders 31,300 Number of units 112 700 Number of units 458 7,500 2, 500 Providing utilities 5 318,840 Additional production information concerming its two product ines follows