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		$	476,000		Number of batches	710
	Machining			312,000		Machine hours	7,650
	Setups			234,000		Number of setups	200
			$	1,022,000
Finishing	Welding		$	190,000		Welding hours	6,800
	Inspecting			221,000		Number of inspections	835
	Rework			61,500		Rework orders	210
			$	472,500
Support	Purchasing		$	133,000		Purchase orders	477
	Providing space			34,000		Number of units	5,160
	Providing utilities			70,000		Number of units	5,160
			$	237,000

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,100			3,060
Welding hours		2,600			4,200
Batches		355			355
Number of inspections		485			350
Machine hours		2,350			5,300
Setups		100			100
Rework orders		100			110
Purchase orders		318			159

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 $280 for Model 145 and $150 for Model 212. 3. If the market price for Model 145 is $2,150 and the market price for Model 212 is $310, determine the profit or loss per unit for each model.