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 (Loss amounts should be indicated with a minus sign Round your intermediate calculations and round Cost per unit and OH rate answers to 2 decimal places ) Process Activity Overhead Cost Driver Quantity Components Changeover $ 457,000 Number of batches 930 Machining 301,000 Machine hours 7,680 Setups 228,500 Number of setups 200 $ 986,500 Finishing Welding $ 182,700 Welding hours 4,500 Inspecting 228,000 Number of inspections 725 Rework 61,150 Rework orders 190 $ 471,850 Support Purchasing $ 137,500 Purchase orders 563 Providing space 30,800 Number of units 5,700 Providing utilities 60,190 Number of units 5,700 $ 228,490 Additional production information concerning its two product lines follows Model 145 Model 212 Units produced 1,900 3,800 Welding hours 1,200 3,300 Batches 465 465 Number of inspections 470 255 Machine hours 2,280 5,400 Setups 100 100 Rework orders 80 110 Purchase orders 375 188 Required Required 1 Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line Overhead costs $1,686,840 $219 64 per machine hour Machine hours 7,680 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 $200 for Model 212 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 2,280 $219 64 $500,779 1,900 $263 57 Model 212 5,400 $219 64 $1,186,056 3,800 $312 12 Total manufacturing cost per unit Model 145 Model 212 Materials and Labor Overhead 263 57 312 12 Total manufacturing cost $3,743 57 3 If the market price for Model 145 is $737 and the market price for Model 212 is $440, determine the profit or loss per unit for each model Model 145 Model 212 Market price

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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

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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.)

Process	Activity	Overhead Cost			Driver	Quantity
Components	Changeover		$	457,000	Number of batches	930
	Machining			301,000	Machine hours	7,680
	Setups			228,500	Number of setups	200
			$	986,500
Finishing	Welding		$	182,700	Welding hours	4,500
	Inspecting			228,000	Number of inspections	725
	Rework			61,150	Rework orders	190
			$	471,850
Support	Purchasing		$	137,500	Purchase orders	563
	Providing space			30,800	Number of units	5,700
	Providing utilities			60,190	Number of units	5,700
			$	228,490

Additional production information concerning its two product lines follows.

	Model 145		Model 212
Units produced		1,900		3,800
Welding hours		1,200		3,300
Batches		465		465
Number of inspections		470		255
Machine hours		2,280		5,400
Setups		100		100
Rework orders		80		110
Purchase orders		375		188

Required:

1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line.
Overhead costs	$1,686,840	$219.64	per machine hour
Machine hours	7,680
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 $200 for Model 212.

Overhead Assigned	Activity Driver	Plantwide OH rate	Total Overhead Cost	Units Produced	OH Cost per unit
Model 145	2,280	$219.64	$500,779	1,900	$263.57
Model 212	5,400	$219.64	$1,186,056	3,800	$312.12

Total manufacturing cost per unit:		Model 145	Model 212
Materials and Labor
Overhead		263.57	312.12
Total manufacturing cost		$3,743.57

3. If the market price for Model 145 is $737 and the market price for Model 212 is $440, determine the profit or loss per unit for each model.
		Model 145	Model 212
Market price