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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 930 8, 340 160 Finishing Welding Inspecting Rework Overhead cost $ 488,250 396,150 294,400 $1,178,800 $ 283,920 250, 100 30,759 $ 564,770 $ 160,820 30.800 112.720 $ 304,340 Welding hours Number of inspections Rework orders 5,200 820 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 473 7,800 7,800 Additional production Information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,600 2,200 465 490 Model 212 5,200 3,000 465 330 5.290 80 BO 158 Be 70 315 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 $114 for Model 212 3. If the market price for Model 145 is $635.63 and the market price for Model 212 is $320.69, determine the profit or loss per unit for each model Required 1 Required 2 Reguired Required 3 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 Model 212 Activity driver Overhead incurred assigned 488.250 396,150 21,400 930 Number of batches 8,340 Machine hours 160 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Herwork Support Purchasing Providing space and $ 28.3.20 250.000 30.750 5.200 Welding hours 120 Inspection 150 Rework onders $ 160.120 143.520 473 Purchase orders 7.800 Units Total overhead cost Total produced Overhead cost per unit
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 $114 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per un Overhead cost per unit Total cost per unit (Required 1 Required 3 > If the market price for Model 145 is $635.63 and the market price for Model 212 is $320.69, 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
