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.

Exercise 17-9 Using ABC to assess prices LO P3 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. Activity Components Changeover Machining Overhead Cost Quantity Process Driver $452,350 Number of batches 830 Machine hours 388,056 224,400 8,510 Number of setups Setups 120 $1,064,806 Welding hours Number of inspections Rework orders Finishing Welding Inspecting Rework 280,770 4,900 307,800 50,600 855 230 639,170 Purchasing Providing space Providing utilities Support 160,960 31,400 96,250 Purchase orders 503 Number of units 6,900 Number of units 6,900 288,610 Additional production information concerning its two product lines follows. Model 212 Model 145 Units produced Welding hours 2,300 1,800 4,600 3,100 Batches 415 415 Number of inspections Machine hours 475 380 3,250 5,260 Setups 60 60 130 Rework orders 100 Exercise 17-9 Using ABC to assess prices LO P3 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. Quantity Activity Components Changeover Machining Setups overhead Cost Driver Process $ 452,350 388,056 224,400 Number of batches 830 Machine hours 8,510 Number of setups 120 $1,064,806 Finishing Welding Inspecting Rework $ 280,770 307,800 Welding hours Number of inspections 4,900 855 50,600 Rework orders 230 639,170 Purchasing Providing space 160,960 31,400 96,250 Support Purchase orders 503 Number of units 6,900 Providing utilities Number of units 6,900 $ 288,610 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours 2,300 1,800 4,600 3,100 Batches 415 415 Number of inspections Machine hours 475 380 3,250 5,260 Setups 60 60 Rework orders 100 130 Purchase orders 335 168 Exercise 17-9 Using ABC to assess prices LO P3 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. Activity Components Changeover Machining Overhead Cost Driver Quantity Process $452,350 Number of batches 830 388,056 224,400 Machine hours 8,510 Number of setups 120 Setups $1,064,806 $ 280,770 Finishing Welding Inspecting $ Welding hours Number of inspections 4,900 307,800 50,600 855 Rework Rework orders 230 $ 639,170 $ Purchase or ders Purchasing Providing space Providing utilities $ 160,960 503 Support 31,400 96,250 Number of units 6,900 Number of units 6,900 288,610 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours 2,300 1,800 4,600 3,100 Batches 415 415 Number of ins pections 475 380 Machine hours 3,250 5,260 Setups 60 60 Rework orders 100 130 Purchase orders 335 168 Model 145 Model 212 Units produced Welding hours Batches 2,300 1,800 4,600 3,100 415 415 Number of inspections 475 380 Machine hours 3,250 5,260 Setups 60 60 Rework orders 100 130 Purchase orders 335 168 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 $220 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $625.99 and the market price for Model 212 is $342.95, determine the profit or loss per unit for each model. Required 2 Required 3 Required 1 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Model 212 Activity driver Activity Overhead Expected Costs Overhead Activity Expected Activity Activity Rate driver assigned assigned incurred incurred Components 830 Number of batches 452,350 S Changeover 8,510 Machine hours 388,056 Machining 120 Setups Setups 224,400 Finishing 4,900 Welding hours Welding S 280,770 855 Inspections 230 Rework orders Inspecting 307,800 Rework 50,600 Support 503 Purchase orders Purchasing $ 160,960 Providing space and utilities 6,900 Units 127,650 Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 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 $220 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $625.99 and the market price for Model 212 is $342.95, 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 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $112 for Model 212. (Round your final answers to 2 decimal places.) Model 212 Model 145 Materials and Labor per unit Overhead cost per unit Total cost per unit Required 1 Required 3 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 $625.99 and the market price for Model 212 is $342.95, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 212 Model 145 Price per unit Cost per unit Profit (loss) per unit Required 2 Required 3