Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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. Activity omponents Changeover Overhead Cost 476,000 umber of batche 770 8,130 Machining 303,000 Machine hours Setups 233,000 Number of setups 140 $1,012,000 Finishing Welding 92,000 Welding hours 4,200 233,000 Number of inspections 820 63,000 Rework orders 150 Inspecting Rework 488,000 147,000 Purchase orders Support Purchasing 555 Providing space 38,500 Number of units 5,040 Providing utilities 69,000 Number of units 5,040 252,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,000 3.040 Welding hours 1.000 3,200 Batches. 385 385 Number of inspections Machine hours 2,850 5.280 Setups Rework orders 100 Purchase orders 370