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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

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 $ 510,450 Number of batches 830
Machining 355,424 Machine hours 7,660
Setups 145,200 Number of setups 80
$ 1,011,074
Finishing Welding $ 258,230 Welding hours 4,900
Inspecting 342,000 Number of inspections 900
Rework 65,000 Rework orders 250
$ 665,230
Support Purchasing $ 180,900 Purchase orders 540
Providing space 30,700 Number of units 4,500
Providing utilities 52,100 Number of units 4,500
$ 263,700

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 1,500 3,000
Welding hours 1,800 3,100
Batches 415 415
Number of inspections 520 380
Machine hours 2,350 5,310
Setups 40 40
Rework orders 140 110
Purchase orders 360 180

Required:
1.

Using ABC, compute the overhead cost per unit for each product line.(Round your intermediate calculations and round activity rate and cost per unitanswers to 2 decimal places.)

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