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 Driver Process Overhead Cost Quantity Components Changeover 458,000 Number of batches 770 308,000 Machine hours Machining 8.140 Setups 235,000 Number of setups 100 1,001,000 186,000 Welding hours Finishing Welding 3.900 Inspecting 222,000 Number of inspections 800 Rework 61,500 Rework orders 230 469,500 137,000 Purchase orders Support Purchasing 501 31,000 Number of units Providing space 4.750 68,000 Number of units Providing utilities 4,750 236,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,700 3,050 Welding hours 800 3,100 Batches 385 385 Number of inspections 480 320 Machine hours 2.850 5.290 Setups 50 50 Rework orders 130 100 Purchase orders 334 167