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 810 8,170 60 Tinishing Welding Inspecting Rework Overhead Cost $ 562,950 380, 722 108,300 $1,051,972 $ 382.320 321,475 51,750 $ 755,545 $ 187,880 31,300 134,000 $ 353,180 Welding hours Number of inspections Rework orders 5,900 835 230 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 8,700 8,700 Additional production information concerning its two product lines follows. Model 212 5,800 3,700 405 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2.900 2,200 405 475 2,850 30 130 360 5,320 30 100 325 163 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 $180 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $526.63 and the market price for Model 212 is $319.99, determine the profit or loss per unit for each model. 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 $180 for Model 145 and $120 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 $526.63 and the market price for Model 212 is $319.99, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Activity Expected Costs Expected Activity Activity Rate Activity driver incurred $ Components Changeover Machining Setups 562,950 380,722 108,300 810 Number of batches 8,170 Machine hours 60 Setups Finishing 382,320 321,475 51,750 5,900 Welding hours 835 inspections 230 Rework orders Welding Inspecting Rework Support Purchasing Providing space and utilities 187.880 165,300 488 Purchase orders 8.700 Units Total overhead cost Total units produced Overhead cost per unit Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned # Nort
