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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,930 60 Finishing Welding Inspecting Rework Overhead Cost $ 492,750 372,710 113,700 $ 979,160 $ 302,940 282,150 45,600 $ 630,690 $ 181,125 30,700 30,680 $ 242,505 Welding hours Number of inspections Rework orders 5,100 855 190 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 525 3,300 3,300 Additional production information concerning its two product lines follows. Model 212 2,200 3,900 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,100 1,200 365 515 2,650 30 70 350 365 340 5,280 30 120 175 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 $180 for Model 145 and $121 for Model 212. 3. If the market price for Model 145 is $932.43 and the market price for Model 212 is $587.42, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate $ 492.750 372,710 113,700 730 Number of batches 7,930 Machine hours 60 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 302,940 282,150 45,600 5,100 Welding hours 855 Inspections 190 Rework orders $ 525 Purchase orders 181,125 61,380 3,300 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit Complete this question by entering your answers in the tabs below. 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 $180 for Model 145 and $121 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit $ 180.00 $ 121.00 Overhead cost per unit Total cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $932.43 and the market price for Model 212 is $587.42, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 $ 932.43 $ 587.42 Price per unit Cost per unit Profit (loss) per unit
