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		$	454,000		Number of batches	770
	Machining			307,000		Machine hours	7,970
	Setups			234,000		Number of setups	40
			$	995,000
Finishing	Welding		$	182,000		Welding hours	5,300
	Inspecting			222,000		Number of inspections	845
	Rework			63,500		Rework orders	230
			$	467,500
Support	Purchasing		$	149,000		Purchase orders	477
	Providing space			38,000		Number of units	5,090
	Providing utilities			71,000		Number of units	5,090
			$	258,000

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,000			3,090
Welding hours		2,200			3,100
Batches		385			385
Number of inspections		505			340
Machine hours		2,650			5,320
Setups		20			20
Rework orders		100			130
Purchase orders		318			159

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.(Round your intermediate calculations and per unit cost answers to 2 decimal places.)

.

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

2.	Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 and $170 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 per unit
Total cost per unit

3.	If the market price for Model 145 is $1,850 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