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 850 Machining 309,000 Machine hours 8,220 Setups 234.000 Number of setups 20 $ 999,000 Finishing Welding $ 182,000 Welding hours 4.800 Inspecting 230,000 Number of inspections Rework 64,000 Rework orders $ 476,000 Support Purchasing $ 145,000 Purchase orders 495 Providing space 32,000 Number of units 5,080 Providing utilities 69,000 Number of units 5,080 $ 246,000 850 150 Additional production information concerning its two product lines follows. Model 212 3,080 3,600 425 Model 145 2,000 1.200 425 470 2,950 10 70 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders 380 5,270 10 BO 165 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 $270 for Model 14 and $160 for Model 212. 3. If the market price for Model 145 is $1100 and the market price for Model 212 is $260, determine the profit or loss per unit for eac model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Finishing department Finishing department Support department OK ht Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 $ 0 nt Components Finishing Support 0 ences Activity Driver Model 212 Departmental OH Rate Total Overhead Cost S 0 Components Finishing Support $ 0 0 Required Required 2 > 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 materials costs per unit are $270 for Model 145 and $160 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimol places.) Model 145 Model 212 Materials and Labor por unit Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $1,100 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 Cost per unit Profit (los) per unit
