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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,620 60 Finishing Welding Inspecting Rework Overhead cost $ 472,000 308,000 234,000 $1,014,000 $ 192,000 230,000 61,000 $ 483.000 $ 139,000 31,500 68,000 238,500 Welding hours Number of inspections Rework orders 4,300 815 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 513 4,900 4,900 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setup Rework orders Purchase orders Model 145 1,800 1,200 365 505 2,350 30 80 342 Model 212 3,100 3,100 365 310 5,270 30 70 171 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 finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $270 for Model 145 and $120 for Model 212 3. If the market price for Model 145 is $1700 and the market price for Model 212 is $280, determine the profit or loss per unit for each 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 finishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less 133.07 per machine hour $ 1,014,000 $ 7,620 Components department Overhead costs Machine hours Finishing department Overhead costs Welding hours Support department Overhead costs Number of purchase orders 112.33 per welding hour $ 483,000 $ 4,300 464.91 per purchase order $ 238,5001S 513 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost $ Components Finishing Support Oo $ 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost S 0 Components Finishing Support S 0 0 Complete this question by entering your answers in the tabs below. 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 $270 for Model 145 and $120 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required's If the market price for Model 145 is $1,700 and the market price for Model 212 is $280, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
