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 Quantity 770 8,280 40 Finishing Welding Inspecting Rework Overhead Cost Driver $ 458,000 Number of batches 306,000 Machine hours 225,000 Number of setupa $ 989,000 $ 190,000 Welding hours 230,000 Number of inspections 64.000 Rework orders $ 484,000 5143,000 Purchase ordera 30,500 Number of units 69,000 Number of unita $ 242,500 5.400 820 250 Support Purchasing Providing space Providing utilities 465 4,580 4,580 Additional production information concerning Its two product lines follows. Model 145 Model 212 Linits produced 1,500 3,080 Kelding hours 2.000 3,400 Thatcher 385 385 Number of inspections 470 350 Machine hours 2,950 5.330 Setup 20 20 Rework orders 140 110 Purchase orders 310 155 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 $260 for Model 145 3. If the market price for Model 145 is $1,850 and the market price for Model 212 is $330, determine the profit or loss per unit for each and $170 for Model 212. model. Components department of Finishing department Support department 0 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost 0 Components Finishing Support $ $ 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost $ $ 0 Components Finishing Support $ 0 0 Determine the total cost per unit for each product line if the direct labor and direct material costs per unit are $260 for Model 145 and $170 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 If the market price for Model 145 is $1,850 and the market price for Model 212 is $330, 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 (los) per unit
