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 Quantity Components 800 Activity Changeover Machining Setups Overhead Cost $ 500,000 279,000 225,000 $1,004,000 Driver Number of batches Machine hours Number of setups 6,000 120 Finishing Welding Inspecting Rework 180,300 210,000 75,000 465,300 Welding hours Number of inspections Rework orders 3,000 700 300 $ Support Purchasing Providing space Providing utilities Purchase orders Number of units $ 135,000 32,000 65,000 $ 232,000 450 5,000 5,000 Number of units Additional production information concerning its two product lines follows. Model 145 1,500 800 Model 212 3,500 2,200 400 400 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 400 1,800 60 160 300 4,200 60 140 300 150 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 $250 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. 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 212 Activity Model 145 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate Activity driver incurred Overhead assigned Components Changeover $ 500.000 800 Number of batches Machining 279,000 6,000 Machine hours 225.000 120 Setups Setups Finishing Welding Inspecting $ 180,300 3,000 Welding hours 700 Inspections 210,000 Rework 75,000 300 Rework orders Support Purchasing $ 135,000 450 Purchase orders Providing space and utilities 97,000 5,000 Units Total overhead cost Total units produced Overhead cost per unit 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 $250 for Model 145 and $180 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 $820 and the market price for Model 212 is $480, 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
