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 Overhead Cost $ 416,250 389,880 224,400 $1,030,530 Driver Number of batches Machine hours Number of setups Quantity 750 8,550 120 5,600 Finishing Welding Inspecting Rework $ 281,680 311,500 44,100 $ 637,280 Welding hours Number of inspections Rework orders 210 Support Purchasing Providing space Providing utilities $ 208,050 31,100 127,660 $ 366,810 Purchase orders Number of units Number of units 570 8,400 8,400 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 2,800 2,000 375 490 3,250 Model 212 5,600 3,600 375 400 5,300 60 120 190 60 90 380 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 $240 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $580.25 and the market price for Model 212 is $306.81, 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.) ected Activity Model 145 Activity driver Overhead incurred assigned Activity Rate Activity Expected Costs Model 212 Activity driver Overhead incurred assigned Expected Activity Activity driver Activity Rate Overhead A 416,250 389,880 224,400 750 Number of batches 8,550 Machine hours 120 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities 281,680 311,500 44,100 5,600 Welding hours 890 Inspections 210 Rework orders 208,050 158,760 570 Purchase orders 8,400 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 $240 for Model 145 and $113 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 $580.25 and the market price for Model 212 is $306.81, 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
