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Way Cool produces two different models of air conditioners. The companyr produces the mechanical systems in its components department. The mechanical systems are combined with

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Way Cool produces two different models of air conditioners. The companyr produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its nishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantit},Y Components Changeover $ 458,000 Number of batches 790 Machining 306,000 Machine hours 8,050 Setups 230,000 Number of setups 20 $ 994,000 Finishing Welding $ 184,000 Welding hours 4,100 Inspecting 232,000 Number of inspections 880 Rework 62,500 Rework orders 200 $ 478,500 Support Purchasing $ 14?,000 Purchase orders 549 Providing space 35,000 Number of units 4,860 Providing utilities 63,000 Number of units 4,860 $ 245,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,800 3,060 Welding hours 1,000 3,100 Batches 395 395 Number of inspections 490 390 Machine hours 2,750 5,300 Setups 10 10 Rework orders 150 50 Purchase orders 366 183 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 nishing department Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line 'rlthe direct labor and direct materials costs per unit are $190 for Model 145 and $150 for Model 212. 3. If the market price for Model 145 is $1,475 and the market price for Model 212 is $320, determine the prot or loss per unit for each model.

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