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 $ 464,000 Nunber of batches 830 Machining 305,000 Machine hours 8,660 Setups 228,000 Number of setups 180 $997,000 Finishing Welding $ 186,000 Welding hours 5,300 Inspecting 225,000 Number of inspections 775 Rework 64,500 Rework orders 240 $475,500 Support Purchasing $ 145,000 Purchase orders 549 Providing space 32,000 Number of units 4,610 Providing utilities 63,800 Number of units 4,610 $ 240,000 Additional production Information concerning its two product lines follows. Model 145 Model 212 Units produced 1,500 3,110 Welding hours 1,400 3,900 Batches 415 415 Number of inspections 455 320 Machine hours 3,350 5,310 Setups 90 90 Rework orders 160 80 Purchase orders 366 183 Rework orders Purchase orders 160 366 80 183 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 $240 for Model 145 and $130 for Model 212. 3. If the market price for Model 145 is $1,175 and the market price for Model 212 is $270, determine the profit or loss per unit for each model