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 Quantity 810 7,890 100 Finishing Welding Inspecting Overhead Cost Driver $ 464,000 Number of batches 305,000 Machine hours 225,000 Number of setups $ 994,000 $184,000 Welding hours Number of inspections 64,500 Rework orders $ 471,500 $147,000 Purchase orders 31,500 Number of units 61,000 Number of units $ 239,500 223,000 5,400 845 280 Rework Support Purchasing Providing space Providing utilities 555 4,640 4,640 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 1,600 2,200 405 465 2,550 50 150 370 Model 212 3,040 3,200 405 380 5, 340 50 130 185 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 $270 for Model 145 and $210 for Model 212. 3. If the market price for Model 145 is $875 and the market price for Model 212 is $310, determine the profit or loss per unit for each model