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 Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 890 8,540 200 Finishing Welding Inspecting Rework Overhead Cost $ 609,650 390, 278 372,000 $1,371,928 $ 385,800 322,200 59,000 $ 767,000 $ 187,880 31,700 42,400 $ 261,980 Welding hours Number of inspections Rework orders 6,000 895 200 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 3,900 3,900 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 1,300 2,000 445 525 3,250 100 80 325 Model 212 2,600 4,000 445 370 5,290 100 120 163 Required: 1. Using ABC, 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 $250 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $1,120.03 and the market price for Model 212 is $609.02, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Expected Costs Activity Model 212 Activity driver Overhead incurred assigned Activity Rate Expected Activity $ 609,650 890 Number of batches 8,540 Machine hours 390,278 372,000 200 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 385,800 322,200 59,000 6,000 Welding hours 895 Inspections 200 Rework orders $ 187,880 74,100 488 Purchase orders 3,900 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit Required: 1. Using ABC, 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 $250 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $1,120.03 and the market price for Model 212 is $609.02, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $1,120.03 and the market price for Model 212 is $609.02, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
