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 $ 568,750 Number of batches 910 Machining 395,168 Machine hours 8,480 Setups 150,800 Number of setups 80 $1,114,718 Finishing Welding $ 294,220 Welding hours 4,700 Inspecting 263, 250 Number of inspections 810 Rework 48,450 Rework orders 190 $ 605,920 Support Purchasing $ 141,825 Purchase orders 465 Providing space 31,600 Number of units 3,900 Providing utilities 41,330 Number of units 3,900 $ 214,755 3 aces Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,300 2,600 Welding hours 1.000 3,700 Batches 455 455 Number of inspections 500 310 Machine hours 3,150 5,330 Setups 40 40 Rework orders 120 70 Purchase orders 310 155 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 $260 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $938.31 and the market price for Model 212 is $518.81, determine the profit or loss per unit for each model Chec Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Model 145 Activity driver Overhead incurred assigned $ 568,750 395,168 150,800 910 Number of batches 8.480 Machine hours 80 Setups $ $ 625.00 per batch 46.60 per machine hour 1.885.00 per setup Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 294,220 263.250 48,450 4,700 Welding hours 810 Inspections 190 Rework orders $ $ $ 62.60 per welding hour 325.00 per inspection 255.00 per rework order $ 141.825 72,930 465 Purchase orders 3,900 Units $ $ L 305.00 per purchase order 18.70 per unit Total overhead cost Total units produced Overhead cost per unit $ 0 Required 2 > product line. (Round your final answers to 2 decimal places.) Expected Activity Activity Rate Model 145 Activity driver Overhead Incurred assigned Model 212 Activity driver Overhead Incurred assigned $ 910 Number of batches 8.480 Machine hours 80 Setups $ $ 625.00 per batch 46.60 per machine hour 1.885.00 per setup 4.700 Welding hours 810 Inspections 190 Rework orders $ $ $ 62.60 per welding hour 325.00 per inspection 255.00 per rework order 465 Purchase orders 3,900 Units $ $ 305.00 per purchase order 18.70 per unit Total overhead cost Total units produced Overhead cost per unit $ 0 $ 0 Required 2 >
