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. Process Activity Overhead Cost Driver Quantity Components Changeover 536,250 Number of batches 750 8,560 Machining 395.472 Machine hours Setups 75.800 Number of setups 40 $1,007, 522 189,810 elding hours 3,700 Finishing Welding Number of 333.775 Inspecting 845 nspections Rework 59.400 Rework orders 220 582,985 171,020 Purchase orders Support Purchasing 503 Providing space 31,000 Number of units 6,600 Providing utilities 95,060 Number of units 6.600 297,080 Additional production information concerning its two product lines follows. Model 145 Model 212 4,400 Units produced 2.200 Welding hours 800 2,900 Batches 375 375 Number of inspections 475 370 5,310 Machine hours 3.250 Setups 20 20 Rework orders 130 90 Purchase orders 335 168