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		$	452,000		Number of batches	890
	Machining			301,000		Machine hours	8,540
	Setups			234,000		Number of setups	100
			$	987,000
Finishing	Welding		$	186,000		Welding hours	5,300
	Inspecting			224,000		Number of inspections	905
	Rework			64,000		Rework orders	160
			$	474,000
Support	Purchasing		$	141,000		Purchase orders	555
	Providing space			37,500		Number of units	5,070
	Providing utilities			62,000		Number of units	5,070
			$	240,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,000			3,070
Welding hours		1,800			3,500
Batches		445			445
Number of inspections		505			400
Machine hours		3,250			5,290
Setups		50			50
Rework orders		70			90
Purchase orders		370			185

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 $190 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,700 and the market price for Model 212 is $300, determine the profit or loss per unit for each model.