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		$	474,000		Number of batches	770
	Machining			313,000		Machine hours	8,090
	Setups			229,000		Number of setups	140
			$	1,016,000
Finishing	Welding		$	182,000		Welding hours	6,100
	Inspecting			231,000		Number of inspections	835
	Rework			62,500		Rework orders	230
			$	475,500
Support	Purchasing		$	139,000		Purchase orders	501
	Providing space			32,500		Number of units	4,700
	Providing utilities			68,000		Number of units	4,700
			$	239,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,600			3,100
Welding hours		2,400			3,700
Batches		385			385
Number of inspections		455			380
Machine hours		2,750			5,340
Setups		70			70
Rework orders		150			80
Purchase orders		334			167

Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $1,925 and the market price for Model 212 is $290, determine the profit or loss per unit for each model.