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 $ 456,000 Number of batches 790 Machining 312,000 Machine hours 7,630 Setups 228,000 Number of setups 120 $ 996,000 Finishing Welding $ 182,000 Welding hours 5,600 Inspecting 234,000 Number of inspections 810 Rework 63,500 Rework orders 180 $ 479,500 Support Purchasing $ 133,000 Purchase orders 567 Providing space 34,500 Number of units 4,640 Providing utilities 68,000 Number of units 4,640 $ 235,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,600 3,040 Welding hours 2,400 3,200 Batches 395 395 Number of inspections 470 340 Machine hours 2,350 5,280 Setups 60 60 Rework orders 80 100 Purchase orders 378 189 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 $290 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $1,250 and the market price for Model 212 is $260, determine the profit or loss per unit for each model

If the market price for Model 145 is $1,250 and the market price for Model 212 is $260, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

	Model 145	Model 212
Market price per unit	$1,250.00	$260.00
Cost per unit
Profit (loss) per unit

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 $180 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.)

	Model 145	Model 212
Materials and Labor per unit	$290.00	$180.00
Overhead cost per unit
Total cost per unit