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 Components Changeover Machining Setups Finishing Welding $ 468,000 307,000 Number of batches Machine hours 225,000 Number of setups Quantity 770 8,330 160 $1,000,000 Inspecting $ 192,000 232,000 Welding hours 5,000 Number of inspections 865 Rework 63,000 Rework orders 150 $ 487,000 Support Purchasing $ 143,000 Purchase orders 555 Providing space 37,000 Number of units 4,710 Providing utilities 68,000 Number of units 4,710 $ 248,000 Additional production information concerning its two product lines follows. Units produced Welding hours Model 145 1,700 1,600 Model 212 3,010 3,400 Batches 385 385 Number of inspections 485 380 Machine hours 3,050 5,280 Setups 80 80 Rework orders 80 70 Purchase orders 370 185