Way Cool produces two different models of air conditioners. The company produces 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		$	453,500		Number of batches	890
	Machining			301,600		Machine hours	7,630
	Setups			226,000		Number of setups	120
			$	981,100
Finishing	Welding		$	182,000		Welding hours	4,500
	Inspecting			235,000		Number of inspections	820
	Rework			61,250		Rework orders	210
			$	478,250
Support	Purchasing		$	134,500		Purchase orders	503
	Providing space			31,900		Number of units	5,100
	Providing utilities			60,650		Number of units	5,100
			$	227,050

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,700			3,400
Welding hours		1,200			3,300
Batches		445			445
Number of inspections		520			300
Machine hours		2,330			5,300
Setups		60			60
Rework orders		110			100
Purchase orders		335			168

Required:

1. Using a plant-wide overhead rate based on machine-hours, compute the overhead cost per unit for each product line.

0

2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $300 for Model 145 and $170 for Model 212

Overhead assigned	Activity driver	Plantwide OH rate	Total Overhead Cost	Units Produced	OH Cost per unit
Model 145			$0
Model 212			$0

Model 145	Model 212

3. If the market price for Model 145 is $732 and the market price for Model 212 is $460, determine the profit or loss per unit for each model.

	Model 145	Model 212
Market Price