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 830 8, 480 20 Finishing Welding Inspecting Rework Overhead Cost 472,000 309,000 228,000 $1,009,000 186,000 234,000 63,500 $ 483,500 $ 145,000 35,500 70,000 250,500 Welding hours Number of inspections Rework orders 4,500 825 220 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 459 4,980 4,980 Additional production information concerning its two product lines follows. Model 145 1,900 1,400 415 485 3,150 10 100 306 Model 212 3,080 3,100 415 340 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 5,330 10 10 120 153 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 $200 for Model 145 and $150 for Model 212. 3. If the market price for Model 145 is $1,175 and the market price for Model 212 is $260, determine the profit or loss per unit for each model