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 8,670 140 Finishing Welding Inspecting Rework Overhead Cost $ 609,650 399,687 265,300 $1,274,637 $ 312,480 311,400 60,000 $ 683,880 $ 197,210 31,800 118,650 $ 347,060 Welding hours Number of inspections Rework orders 4,800 865 250 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 533 8,100 8,100 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 2,700 1,400 445 505 3,350 Model 212 5,400 3,400 445 360 5,320 70 90 160 355 178 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 $210 for Model 145 and $121 for Model 212. 3. If the market price for Model 145 is $612.38 and the market price for Model 212 is $347.47, determine the profit or loss per unit for each model. 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 Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate $ 609,650 399,687 265,300 890 Number of batches 8,670 Machine hours 140 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 312,480 311,400 60,000 4,800 Welding hours 865 Inspections 250 Rework orders 197,210 149,850 533 Purchase orders 8,100 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 > 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 $210 for Model 145 and $121 for Model 212. (Round your final 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 $612.38 and the market price for Model 212 is $347.47, 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
