Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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		$	500,000		Number of batches	800
	Machining			279,000		Machine hours	6,000
	Setups			225,000		Number of setups	120
			$	1,004,000
Finishing	Welding		$	180,300		Welding hours	3,000
	Inspecting			210,000		Number of inspections	700
	Rework			75,000		Rework orders	300
			$	465,300
Support	Purchasing		$	135,000		Purchase orders	450
	Providing space			32,000		Number of units	5,000
	Providing utilities			65,000		Number of units	5,000
			$	232,000

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,500
Welding hours		800			2,200
Batches		400			400
Number of inspections		400			300
Machine hours		1,800			4,200
Setups		60			60
Rework orders		160			140
Purchase orders		300			150

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 $250 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.

Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Model 145 Model 212 Activity Expected Costs Expected Activity Activity Rate Activity driver Overhead Activity driver Overhead assigned incurred assigned incurred Components Changeover Machining Setups 500,000 279,000 225,000 800 Number of batches 6,000 Machine hours 120 Setups Finishing Welding Inspecting Rework 180,300 210,000 75,000 3,000 Welding hours 700 Inspections 300 Rework orders Support Purchasing Providing space and utilities 135,000 450 Purchase orders 97,000 5,000 Units Total overhead cost Total units produced Overhead cost per unit