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.

Additional production information concerning its two product lines follows.

Process Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,690 120 Finishing Welding Inspecting Rework Overhead Cost $ 454,500 300,400 229,000 $ 983,900 $ 180,500 233,000 60,400 $ 473,900 $ 134,500 32,100 60,160 $ 226,760 Welding hours Number of inspections Rework orders 2,800 785 220 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 473 5,700 5,700 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 800 365 460 2,340 60 100 315 Model 212 3,800 2,000 365 325 5,350 60 120 158 Required: 1. Using a plantwide overhead rate based on machine hours, 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 $250 for Model 145 and $160 for Model 212. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $736 and the market price for Model 212 is $450, determine the profit or loss per unit for each model. Model 145 Model 212 Market price