Overhead Cost Driver Number of batches 303,000 Machine hours 227,000 Number of setups 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 Components Activity Changeover Machining Setups $ 466,000 Quantity 770 8,220 140 $ 996,000 Finishing Welding Inspecting $ 182,000 Welding hours 5,300 Rework 235,000 64,000 Number of inspections 915 Rework orders 160 $ 481,000 Support Purchasing $ 143,000 Purchase orders 471 Providing space Providing utilities 37,500 70,000 Number of units Number of units 5,020 5,020 $ 250,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,000 3,020 Welding hours 1,800 3,500 Batches 385 385 Number of inspections 525 390 Machine hours 2,950 5,270 Setups 70 70 Rework orders 100 60 Purchase orders 314 157 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. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $140 for Model 212. 3. If the market price for Model 145 is $1.325 and the market price for Model 212 is $280 determine the profit or loss ner unit for each