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 $ 590,550 Number of batches 930 Machining 390,879 Machine hours 8,370 Setups 222,600 Number of setups 120 $ 1,204,029 Finishing Welding $ 360,250 Welding hours 5,500 Inspecting 295,200 Number of inspections 820 Rework 39,900 Rework orders 190 $ 695,350 Support Purchasing $ 208,240 Purchase orders 548 Providing space 30,800 Number of units 8,100 Providing utilities 123,100 Number of units 8,100 $ 362,140 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 2,700 5,400 Welding hours 2,200 3,300 Batches 465 465 Number of inspections 470 350 Machine hours 3,050 5,320 Setups 60 60 Rework orders 110 80 Purchase orders 365 183 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 $190 for Model 145 and $113 for Model 212 3 If the market price for Model 145 is $588 81 and the market price for Model 212 is $333 12, 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 Activity driver incurred Activity Expected Costs Expected Activity Activity Rate $ 590,550 390,879 222,600 930 Number of batches 8,370 Machine hours 120 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 360,250 295,200 39,900 5,500 Welding hours 820 Inspections 190 Rework orders $ 208,240 153,900 548 Purchase orders 8,100 Units Total overhead cost Total units produced Overhead cost per unit

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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

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		$	590,550	Number of batches	930
	Machining			390,879	Machine hours	8,370
	Setups			222,600	Number of setups	120
			$	1,204,029
Finishing	Welding		$	360,250	Welding hours	5,500
	Inspecting			295,200	Number of inspections	820
	Rework			39,900	Rework orders	190
			$	695,350
Support	Purchasing		$	208,240	Purchase orders	548
	Providing space			30,800	Number of units	8,100
	Providing utilities			123,100	Number of units	8,100
			$	362,140

Additional production information concerning its two product lines follows.

	Model 145		Model 212
Units produced		2,700		5,400
Welding hours		2,200		3,300
Batches		465		465
Number of inspections		470		350
Machine hours		3,050		5,320
Setups		60		60
Rework orders		110		80
Purchase orders		365		183

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 $190 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $588.81 and the market price for Model 212 is $333.12, determine the profit or loss per unit for each model. image text in transcribed

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 Activity driver incurred Activity Expected Costs Expected Activity Activity Rate $ 590,550 390,879 222,600 930 Number of batches 8,370 Machine hours 120 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 360,250 295,200 39,900 5,500 Welding hours 820 Inspections 190 Rework orders $ 208,240 153,900 548 Purchase orders 8,100 Units Total overhead cost Total units produced Overhead cost per unit