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 Overhead Cost Driver Quantity Components Changeover $ 476,600 Number of batches 830 Machining 307,000 Machine hours 7,970 Setups 229,000 Number of setups 200 $1,012,000 Finishing Welding $ 190,000 Welding hours 5,000 Inspecting 223,000 Number of inspections 795 Rework 64,500 Rework orders $ 477,500 Support Purchasing $ 141,000 Purchase orders 587 Providing space 33,500 Number of units 5,320 Providing utilities 66,000 Number of units 5,320 5 240,500 250 Additional production information concerning its two product lines follows: Model 145 Model 212 Units produced 2,200 3,120 Welding hours 1,200 3,800 Batches 415 415 Number of inspections 330 Machine hours 2,650 5,320 Setups 100 100 Rework orders 150 100 Purchase orders 338 169 465 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $290 for Model 145 3. If the market price for Model 145 is $1700 and the market price for Model 212 is $320, determine the profit or loss por unit for each and $180 for Model 212