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		$	401,150		Number of batches	710
	Machining			381,340		Machine hours	8,290
	Setups			254,100		Number of setups	140
			$	1,036,590
Finishing	Welding		$	321,920		Welding hours	6,400
	Inspecting			254,675		Number of inspections	835
	Rework			43,000		Rework orders	200
			$	619,595
Support	Purchasing		$	165,750		Purchase orders	510
	Providing space			31,900		Number of units	8,100
	Providing utilities			124,430		Number of units	8,100
			$	322,080

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,700			5,400
Welding hours		2,400			4,000
Batches		355			355
Number of inspections		515			320
Machine hours		2,950			5,340
Setups		70			70
Rework orders		130			70
Purchase orders		340			170

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 $118 for Model 212. 3. If the market price for Model 145 is $565.62 and the market price for Model 212 is $312.24, determine the profit or loss per unit for each model.

• 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		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$401,150	710	Number of batches
Machining	381,340	8,290	Machine hours
Setups	254,100	140	Setups
Finishing
Welding	$321,920	6,400	Welding hours
Inspecting	254,675	835	Inspections
Rework	43,000	200	Rework orders
Support
Purchasing	$165,750	510	Purchase orders
Providing space and utilities	156,330	8,100	Units
					Total overhead cost
					Total units produced
					Overhead cost per unit

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 $118 for Model 212. (Round your final answers to 2 decimal places.)

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

If the market price for Model 145 is $565.62 and the market price for Model 212 is $312.24, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.)

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