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 Number of batches 810 Machining 311,000 Machine hours 8,650 Setups 231,000 Number of setups 120 $1,006,000 Finishing Welding $ 194,000 Welding hours 5,200 Inspecting 235,000 Number of inspections 805 Rework 61,500 Rework orders 210 $ 499,500 Support Purchasing $ 141,000 Purchase orders 483 Providing space 37,500 Number of units 4,660 Providing utilities 66,000 Number of units 4,660 $ 244,500 Additional production information concerning its two product lines follows. Model 145 1,600 1,680 405 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 475 3,350 60 100 322 Model 212 3,060 3,689 405 330 5,309 60 110 161 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 $110 for Model 212. 3. If the market price for Model 145 is $1.775 and the market price for Model 212 is $260, determine the profit or loss per unit for each model. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 2 Required 1 Required 2 Required 3 25 points 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. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Overhead costs $ 3 1.000.000 8,050 110.30 per machine hour 0 Machine hours Finishing department Number inspections Overhead costs Support department Number of purchase orders O Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support 0 0 $ 0 MC Graw Hill Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materia 145 and $110 for Model 212. (Round your intermediate calculations and cost per unit answ Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit MC Graw Hill Fritos Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 33 If the market price for Model 145 is $1,775 and the market price for Model 212 is $260, determine the profit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations an to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
