Process	Activity	Overhead Cost				Driver	Quantity
Components	Changeover		$	456,000		Number of batches	870
	Machining			301,000		Machine hours	7,610
	Setups			226,500		Number of setups	60
			$	983,500
Finishing	Welding		$	180,900		Welding hours	4,300
	Inspecting			220,000		Number of inspections	760
	Rework			60,900		Rework orders	200
			$	461,800
Support	Purchasing		$	138,000		Purchase orders	495
	Providing space			32,150		Number of units	6,600
	Providing utilities			60,060		Number of units	6,600
			$	230,210

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,200			4,400
Welding hours		1,000			3,300
Batches		435			435
Number of inspections		480			280
Machine hours		2,310			5,300
Setups		30			30
Rework orders		80			120
Purchase orders		330			165

Required:

1. Using a plantwide overhead rate based on machine hours, 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 $220 for Model 145 and $120 for Model 212. Activity Driver Plantwide OH Total Overhead Cost Units Produced OH Cost per unit rate Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $744 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price