Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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		$	478,000		Number of batches	770
	Machining			308,000		Machine hours	7,790
	Setups			228,000		Number of setups	200
			$	1,014,000
Finishing	Welding		$	192,000		Welding hours	4,900
	Inspecting			225,000		Number of inspections	835
	Rework			64,000		Rework orders	210
			$	481,000
Support	Purchasing		$	137,000		Purchase orders	525
	Providing space			36,500		Number of units	4,700
	Providing utilities			68,000		Number of units	4,700
			$	241,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,600			3,100
Welding hours		1,000			3,900
Batches		385			385
Number of inspections		485			350
Machine hours		2,450			5,340
Setups		100			100
Rework orders		80			130
Purchase orders		350			175

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 $180 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $1,550 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.

Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $180 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 Overhead cost per unit Total cost per unit Required 1 Required 2 Required 3 If the market price for Model 145 is $1,550 and the market price for Model 212 is $320, 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 Cost per unit Profit (loss) per unit