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		$	554,850		Number of batches	810
	Machining			403,620		Machine hours	8,680
	Setups			37,100		Number of setups	20
			$	995,570
Finishing	Welding		$	326,480		Welding hours	5,600
	Inspecting			295,750		Number of inspections	845
	Rework			57,000		Rework orders	200
			$	679,230
Support	Purchasing		$	183,595		Purchase orders	503
	Providing space			31,700		Number of units	4,500
	Providing utilities			52,000		Number of units	4,500
			$	267,295

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,000
Welding hours		1,400			4,200
Batches		405			405
Number of inspections		515			330
Machine hours		3,350			5,330
Setups		10			10
Rework orders		140			60
Purchase orders		335			168

1)Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.)

						Model 145		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$554,850	810	Number of batches
Machining	403,620	8,680	Machine hours
Setups	37,100	20	Setups
Finishing
Welding	$326,480	5,600	Welding hours
Inspecting	295,750	845	Inspections
Rework	57,000	200	Rework orders
Support
Purchasing	$183,595	503	Purchase orders
Providing space and utilities	83,700	4,500	Units
					Total overhead cost
					Total units produced
					Overhead cost per unit

2)

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $260 for Model 145 and $120 for Model 212. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Materials and Labor per unit
Overhead cost per unit
Total cost per unit

3)

If the market price for Model 145 is $862.99 and the market price for Model 212 is $466.54, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Price per unit
Cost per unit
Profit (loss) per unit