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 Overhead Cost Driver Quantity Components Changeover $ 464,000 Number of batches 750 Machining 312,000 Machine hours 8,190 Setups 234,000 Number of setups 40 $1,010,000 Finishing Welding $ 194,000 Welding hours Inspecting 230,000 Number of inspections 83 Rework 61,500 Rework orders $ 485,500 Support Purchasing $ 137,000 Purchase orders 465 Providing space 30,500 Number of units 4,950 Providing utilities 66,000 Number of units $ 233,500 5,400 230 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 1,900 1,400 375 485 2,850 2e 110 Model 212 3,050 4,000 375 350 5,340 20 120 155 31e 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 $240 for Model 145 and $180 for Model 212 3. If the market price for Model 145 is $2,000 and the market price for Model 212 is $270. determine the profit or loss per unit for each model Required 1 Required 2 Required 3 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. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less o per machine hour Components department Overhead.costs Machine hours Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support $ 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support $ 0 0 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $180 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places... Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 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 $2,000 and the market price for Model 212 is $270, determine the profit or loss per unit for each model (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers ito 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
