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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.)

Process	Activity	Overhead Cost				Driver	Quantity
Components	Changeover		$	457,000		Number of batches	750
	Machining			300,800		Machine hours	7,690
	Setups			226,500		Number of setups	200
			$	984,300
Finishing	Welding		$	182,900		Welding hours	4,200
	Inspecting			230,000		Number of inspections	840
	Rework			60,700		Rework orders	210
			$	473,600
Support	Purchasing		$	137,000		Purchase orders	533
	Providing space			30,100		Number of units	4,800
	Providing utilities			60,130		Number of units	4,800
			$	227,230

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		$	470,000		Number of batches	770
	Machining			313,000		Machine hours	8,220
	Setups			228,000		Number of setups	140
			$	1,011,000
Finishing	Welding		$	188,000		Welding hours	5,300
	Inspecting			226,000		Number of inspections	855
	Rework			64,000		Rework orders	160
			$	478,000
Support	Purchasing		$	143,000		Purchase orders	549
	Providing space			31,500		Number of units	5,120
	Providing utilities			70,000		Number of units	5,120
			$	244,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,000			3,120
Welding hours		2,000			3,300
Batches		385			385
Number of inspections		495			360
Machine hours		2,950			5,270
Setups		70			70
Rework orders		100			60
Purchase orders		366			183

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 $230 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $2,000 and the market price for Model 212 is $260, determine the profit or loss per unit for each model.

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