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. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.)

7A. Using a plant table overhead rate based on machine hours, compute the overhead cost per unit. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for model 145 and $180 for model 212. If the market price is $820 for model 145 and 480$ for 212 determine the profit or loss under each model .

7B.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 $250 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.

Process

Activity

Overhead Cost

Driver

Quantity

Components

Changeover

$

500,000

Number of batches

800

Machining

279,000

Machine hours

6,000

Setups

225,000

Number of setups

120

$

1,004,000

Finishing

Welding

$

180,300

Welding hours

3,000

Inspecting

210,000

Number of inspections

700

Rework

75,000

Rework orders

300

$

465,300

Support

Purchasing

$

135,000

Purchase orders

450

Providing space

32,000

Number of units

5,000

Providing utilities

65,000

Number of units

5,000

$

232,000

	Model 145			Model 212
Units produced		1,500			3,500
Welding hours		800			2,200
Batches		400			400
Number of inspections		400			300
Machine hours		1,800			4,200
Setups		60			60
Rework orders		160			140
Purchase orders		300			150