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		$	450,850		Number of batches	710
	Machining			389,844		Machine hours	8,330
	Setups			36,300		Number of setups	20
			$	876,994
Finishing	Welding		$	321,300		Welding hours	5,100
	Inspecting			344,000		Number of inspections	860
	Rework			58,800		Rework orders	240
			$	724,100
Support	Purchasing		$	166,500		Purchase orders	555
	Providing space			31,700		Number of units	4,500
	Providing utilities			52,000		Number of units	4,500
			$	250,200

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,000
Welding hours		2,000			3,100
Batches		355			355
Number of inspections		500			360
Machine hours		3,050			5,280
Setups		10			10
Rework orders		160			80
Purchase orders		370			185

Required:

1.

Using ABC, compute the overhead cost per unit for each product line. (Round your intermediate calculations and round activity rate and cost per unit answers to 2 decimal places.)

						Model 145		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$450,850	710	Number of batches
Machining	389,844	8,330	Machine hours
Setups	36,300	20	Setups
Finishing
Welding	$321,300	5,100	Welding hours
Inspecting	344,000	860	Inspections
Rework	58,800	240	Rework hours
Support
Purchasing	$166,500	555	Purchase orders
Providing space and utilities	83,700	4,500	Units
					Total overhead cost
					Total units produced
					Overhead cost per unit

2.

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $116 for Model 212. (Round your final answers to 2 decimals places.)

	Model 145	Model 212
Materials and Labor per unit
Overhead per unit
Total cost per unit

3.

Assume if the market price for Model 145 is $862.41 and the market price for Model 212 is $470.79, determine the profit or loss per unit for each model. (Round your final answers to 2 decimals places.)

	Model 145	Model 212
Price per unit
Cost per unit
Profit (loss) per unit