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		$	513,750		Number of batches	750
	Machining			389,517		Machine hours	8,270
	Setups			152,000		Number of setups	80
			$	1,055,267
Finishing	Welding		$	293,920		Welding hours	4,400
	Inspecting			298,200		Number of inspections	840
	Rework			44,650		Rework orders	190
			$	636,770
Support	Purchasing		$	178,200		Purchase orders	495
	Providing space			31,300		Number of units	8,100
	Providing utilities			120,980		Number of units	8,100
			$	330,480

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,700			5,400
Welding hours		1,200			3,200
Batches		375			375
Number of inspections		520			320
Machine hours		2,950			5,320
Setups		40			40
Rework orders		110			80
Purchase orders		330			165

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 $190 for Model 145 and $117 for Model 212.

3. If the market price for Model 145 is $535.69 and the market price for Model 212 is $319.45, determine the profit or loss per unit for each model.

Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 212 Activity driver Overhead incurred assigned Model 145 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate Components Changeover Machining $ 513,750 389,517 750 Number of batches 8,270 Machine hours 152,000 80 Setups $ 293,920 298,200 Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities 4,400 Welding hours 840 Inspections 190 Rework orders 44,650 $ 178,200 152,280 495 Purchase orders 8,100 Units Total overhead cost $ 0 $ 0 Total units produced Overhead cost per unit Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $117 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $535.69 and the market price for Model 212 is $319.45, 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