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 Overhead Cost Quantity Process Driver Components Changeover 595,950 Number of batches 870 8,640 Machining 401,760 Machine hours Setups 181.000 Number of setups 100 $1,178,710 245,280 Welding hours 4,800 Finishing Welding Inspecting 283.500 Number of inspections 39.200 Rework orders Rework 160 567,980 151,360 Purchase orders Support Purchasing 473 30.700 Number of units Providing space 6,900 6,900 Providing utilities 101,090 Number of units 283,150 Additional production information concerning its two product lines follows Model 14 Model 212 Units produced 2.300 4.600 Welding hours 1,800 3,000 435 435 Batches Number of inspections 470 340 3,350 5,290 Machine hours Setups Rework orders 110 Purchase orders 315 158