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		$	596,050		Number of batches	910
	Machining			376,184		Machine hours	7,970
	Setups			72,000		Number of setups	40
			$	1,044,234
Finishing	Welding		$	322,380		Welding hours	5,400
	Inspecting			256,725		Number of inspections	815
	Rework			71,400		Rework orders	280
			$	650,505
Support	Purchasing		$	181,125		Purchase orders	525
	Providing space			30,900		Number of units	4,200
	Providing utilities			46,380		Number of units	4,200
			$	258,405

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,400			2,800
Welding hours		1,400			4,000
Batches		455			455
Number of inspections		495			320
Machine hours		2,650			5,320
Setups		20			20
Rework orders		150			130
Purchase orders		350			175

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 $190 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $821.61 and the market price for Model 212 is $498.56, determine the profit or loss per unit for each model.

Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.)

Required 1:

						Model 145		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$596,050	910	Number of batches	$655.00	per batch
Machining	376,184	7,970	Machine hours	$47.20	per machine hour
Setups	72,000	40	Setups	$1,800.00	per setup
Finishing
Welding	$322,380	5,400	Welding hours	$59.70	per welding hour
Inspecting	256,725	815	Inspections	$315.00	per inspection
Rework	71,400	280	Rework orders	$255.00	per rework order
Support
Purchasing	$181,125	525	Purchase orders	$345.00	per purchase order
Providing space and utilities	77,280	4,200	Units	$18.40	per unit
					Total overhead cost		$0		$0
					Total units produced
					Overhead cost per unit

Required 2:

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $116 for Model 212. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Materials and Labor per unit	$190.00	$116.00
Overhead cost per unit
Total cost per unit

Required 3:

If the market price for Model 145 is $821.61 and the market price for Model 212 is $498.56, 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	$821.61	$498.56
Cost per unit
Profit (loss) per unit