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Exercise 04-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of alr 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. (Loss amounts should be Indicated with a minus sign. Round your Intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Machining Setups Quantity 850 7,720 140 Finishing Welding Inspecting Rework Overhead Cost Driver $ 451, see Number of batches 300, 4ee Machine hours 228, eee Number of setups $ 979,400 $ 180,600 Welding hours 229, eee Number of inspections 60, 300 Rework orders $ 469,900 $ 137,500 Purchase orders 30,80 Number of units 60, 160 Number of units $ 228,460 5,3ee 785 200 Support Purchasing Providing space Providing utilities 533 4.800 4,8ee 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 1,600 2,400 425 499 2,320 70 98 355 Model 212 3, 2ee 2,900 425 295 5.4ee 70 110 178 Required: Answer is not complete. 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. , . Overhead costs IS 126.87 979.400 7,720 Machine hours 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $160 for Model 212. Overhead Assigned Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Activity Driver 2,320 2,400 X IS Model 145 Model 212 126.87 X $ 294,338 0 0 IS Model 145 Model 212 Total manufacturing cost per unit: Materials and Labor Overhead Total manufacturing cost 3. If the market price for Model 145 is $760 and the market price for Model 212 is $490, determine the profit or loss per unit for each model. Model 145 Model 212 Market price