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 Driver Number of batches Machine hours Number of setups Quantity 870 8,440 40 Finishing Welding Inspecting Rework Overhead Cost $ 595,950 390,772 73, 800 $1,060,522 $ 279,400 303,400 82,500 $ 665,300 $ 168,000 31,900 94,820 $ 294,720 Welding hours Number of inspections Rework orders 5,500 820 300 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 480 6,600 6,600 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 2,200 1,600 435 490 3,150 20 170 320 Model 212 4,400 3,900 435 330 5,290 20 130 160 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 $114 for Model 212. 3. If the market price for Model 145 is $669.91 and the market price for Model 212 is $358.98, determine the profit or loss per unit for each model. 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.) Model 145 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate Activity d incurre $ 595,950 870 Number of batches 390,772 8,440 Machine hours 40 Setups 73,800 Components Changeover Machining Setups Finishing Welding Inspecting Rework 279,400 303,400 5,500 Welding hours 820 Inspections 300 Rework orders 82,500 Support Purchasing Providing space and utilities $ 480 Purchase orders 168,000 126,720 6,600 Units Total overhead cost $ 0 Total units produced Overhead cost per unit unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned ed Costs Expected Activity Activity Rate 595,950 870 Number of batches 8,440 Machine hours 390,772 73,800 40 Setups 279,400 303,400 82,500 5,500 Welding hours 820 Inspections 300 Rework orders 480 Purchase orders 168,000 126,720 6,600 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit 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 $114 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 Required 1 Required 3 Required 1 Required 2 Required 3 If the market price for Model 145 is $669.91 and the market price for Model 212 is $358.98, 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
