Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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		$	466,000		Number of batches	770
	Machining			302,000		Machine hours	8,630
	Setups			229,000		Number of setups	80
			$	997,000
Finishing	Welding		$	184,000		Welding hours	6,700
	Inspecting			229,000		Number of inspections	840
	Rework			62,500		Rework orders	260
			$	475,500
Support	Purchasing		$	139,000		Purchase orders	543
	Providing space			36,500		Number of units	4,590
	Providing utilities			69,000		Number of units	4,590
			$	244,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,090
Welding hours		2,600			4,100
Batches		385			385
Number of inspections		460			380
Machine hours		3,350			5,280
Setups		40			40
Rework orders		150			110
Purchase orders		362			181

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 $210 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $1,175 and the market price for Model 212 is $310, determine the profit or loss per unit for each model.

Components department 0 0 Finishing department 0 Support department 0 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost S 0 Components Finishing Support S 0 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Components Finishing Support $ 0 0