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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
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.) Quantity Process Components 378 Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups 7,548 40 Finishing 4,200 Welding Inspecting Rework Overhead Cost $ 452,000 301,800 227.eee $ 980,869 $ 182.208 230,000 60,950 $ 473,150 $ 134,500 31.950 60,750 $ 227.200 Welding hours Number of inspections Rework orders 200 Support 540 Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 4.800 4.800 Additional production information concerning its two product lines follows. Model 145 1,600 2,000 435 510 Model 212 3,202 2,200 435 275 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 2,290 5,250 2e 20 140 60 360 180 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $290 for Model 145 and $150 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $731 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
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