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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.

Process Activity Overhead Cost Driver Quantity
Components Changeover $ 516,150 Number of batches 930
Machining 346,710 Machine hours 7,620
Setups 225,000 Number of setups 120
$ 1,087,860
Finishing Welding $ 283,550 Welding hours 5,300
Inspecting 282,225 Number of inspections 795
Rework 58,300 Rework orders 220
$ 624,075
Support Purchasing $ 155,925 Purchase orders 495
Providing space 30,600 Number of units 8,400
Providing utilities 123,960 Number of units 8,400
$ 310,485

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 2,800 5,600
Welding hours 2,000 3,300
Batches 465 465
Number of inspections 465 330
Machine hours 2,350 5,270
Setups 60 60
Rework orders 120 100
Purchase orders 330 165

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 $111 for Model 212. 3. If the market price for Model 145 is $535.21 and the market price for Model 212 is $305.28, determine the profit or loss per unit for each model.

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 $111 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

If the market price for Model 145 is $535.21 and the market price for Model 212 is $305.28, 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

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