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Way Cool produces two different models of air conditioners. The company 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 company produces the mechanical systems in its 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 910 8,150 2e Finishing Welding Inspecting Rework Overhead Cost $ 623,350 375,715 38,000 $1,037,065 $ 238,140 250,500 74,100 $ 562,740 $ 188,605 31,000 42,320 $ 261,925 Welding hours Number of inspections Rework orders 4,200 835 260 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 563 3.900 3,900 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of Inspections Machine hours Setups Rework orders Purchase orders Model 145 1,300 1,000 455 525 2,850 10 130 375 Model 212 2,600 3,200 455 310 5,380 10 130 188 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 $240 for Model 145 and $115 for Model 212. 3. If the market price for Model 145 is $90474 and the market price for Model 212 is $499.42, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below

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