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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
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 S614,250 Number of batches 910 Machining 392,814 Machine hours 8, 340 Setup 302.400 Number of setups $1,309,464 Finishing Welding $ 371,800 Welding hours 5.500 Inspecting 282,750 Number of inspections 870 Rework 47.700 Rework orders 180 $ 702,250 Support Purchasing 170,280 Purchase allers 473 Providing space 31,400 Number of unito 7.500 Providing utilities 108.050 Number of units 7,500 310.530 160 $ Additional production Information concerning its two product lines follows. Model 212 5,000 3,900 455 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework ordero Purchase orders Model 145 2,500 1.600 455 470 3,050 80 140 315 400 5,290 80 40 150 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model 145 Activity driver Overhead Incurred assigned Active Inc $ 614.250 392,814 302.400 910 Number of batches 8,340 Machine hours 160 Setup Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and its 5 371,800 282.750 47,700 5,500 Welding hours 870 Inspections 180 Rework orders $ 170.280 140,250 473 Purchase orders 7.500 Units Total overhead cost Total units produced Overhead cost per unit th 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 8,340 Machine hours 160 Setups 5,500 Welding hours 870 Inspections 180 Rework orders 473 Purchase orders 7.500 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 Required 3 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 $116 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit If the market price for Model 145 is $674.74 and the market price for Model 212 is $368.90, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
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