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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.

ProcessActivityOverhead CostDriverQuantityComponentsChangeover$483,750Number of batches750Machining396,738Machine hours8,370Setups220,200Number of setups120$1,100,688FinishingWelding$303,600Welding hours4,600Inspecting297,850Number of inspections805Rework50,150Rework orders170$651,600SupportPurchasing$178,565Purchase orders503Providing space31,800Number of units6,900Providing utilities100,680Number of units6,900$311,045

Additional production information concerning its two product lines follows.

Model 145Model 212Units produced2,3004,600Welding hours1,4003,200Batches375375Number of inspections485320Machine hours3,0505,320Setups6060Rework orders12050Purchase orders335168

Required:

1.Using ABC, compute the overhead cost per unit for each product line.

2.Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $200 for Model 145 and $119 for Model 212.

3.If the market price for Model 145 is $621.06 and the market price for Model 212 is $357.68, determine the profit or loss per unit for each model.

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Required ?` Using .._._.... pute the overhead cost per unit for each product line . ( Round your final answers to 2 decimals places . ) Model 145 Model 212 Activity Activity Expected Costs Expected Activity Activity Activity Rate* driver Overhead incurred assigned driver Overhead incurred assigned components S Changeover 483, 750 750| Number of |batches Machining 396 , 738 8 , 370| Machine hours Setups 220 , 200 120| Setups Finishing Welding $ 303 , 600 4, 600| Welding hours Inspecting 297, 850 805\\ Inspections Rework 50, 150 170 | Rework orders Support Purchasing $ 178, 565 503| Purchase orders Providing space and utilities 132 , 480 6, 900| Units Total overhead cost O O Total units produced Overhead cost per unitDetermine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $200 for Model 145 and $119 for Model 212. (Round your nal answers to 2 decimal places.) Materials and Labor per unit Overhead cost per unit Total cost per unit If the market price for Model 145 is $621.06 and the market price for Model 212 is $357.68, determine the prot or loss per unit for each model. (Round your nal answers to 2 decimal places.) Cost per unit Prot (loss) per unit

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