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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

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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 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 790 B.350 Finishing Welding Inspecting Rework Overhead Cost $ 472,000 303,000 229,000 $1,004,000 $ 186,000 231,000 64,500 $ 481,500 $ 133,000 31,500 68,000 232.500 Welding hours Number of inspections Rework orders 6.400 770 250 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 471 4,910 4.910 Additional production information concerning its two product lines follows. Model 212 3, 110 4,000 Units produced Welding hours Batches Number of inspections Machine hours Setups Revork orders Purchase orders Model 145 1.800 2.400 395 460 3.050 310 5,300 314 152 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 $220 for Model 145 and $130 for Model 212. 3. If the market price for Model 145 is $1775 and the market price for Model 212 is $250, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Departmental Driver OH Rate Total Overhead Cost Total Overhead Cost Components Finishing Support

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