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	Overhead Cost				Driver	Quantity
Components	Changeover		$	446,250		Number of batches	750
	Machining			394,013		Machine hours	8,510
	Setups			294,400		Number of setups	160
			$	1,134,663
Finishing	Welding		$	315,360		Welding hours	4,800
	Inspecting			328,500		Number of inspections	900
	Rework			43,350		Rework orders	170
			$	687,210
Support	Purchasing		$	178,565		Purchase orders	503
	Providing space			30,300		Number of units	8,100
	Providing utilities			126,840		Number of units	8,100
			$	335,705

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,700			5,400
Welding hours		1,200			3,600
Batches		375			375
Number of inspections		500			400
Machine hours		3,250			5,260
Setups		80			80
Rework orders		100			70
Purchase orders		335			168

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 $200 for Model 145 and $115 for Model 212. 3. If the market price for Model 145 is $563.26 and the market price for Model 212 is $333.62, 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 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate S 446,250 394,013 750 Number of batches 8,510 Machine hours 160 Setups 294,400 Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 315,360 328,500 43,350 4.800 Welding hours 900 Inspections 170 Rework orders S 178,565 157,140 503 Purchase orders 8,100 Units $ 0 S 0 Total overhead cost 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 $200 for Model 145 and $115 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 $563.26 and the market price for Model 212 is $333.62, 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