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. Proces Activity Overhead Coat Driver Quantity Components Changeover $ 478,000 Number of batchen 750 Machining 302,000 Machine hours 3,180 Setups 227,000 Number of setupa 180 $1,007,000 Finishing Welding $184,000 Welding hours 5,300 Inspecting 225,000 Number of inspections 340 Rovork 64.500 Rework orders 230 $ 473,500 Support Purchasing 5 139,000 Purchase orders 489 Providing space 36,500 Number of units 4.980 Providing utilities 65,000 Number of unita 4.980 $ 240,500 Ferences Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,900 1,600 375 480 2,850 90 150 326 Model 212 3,080 3,700 375 360 5,330 90 80 163 103 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 department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 3. If the market price for Model 145 is $1,025 and the market price for Model 212 is $310, determine the profit or loss per unit for each model 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 department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Show less Components department Finishing department Support department Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $280 for Model 145 and $130 for Model 212. (Round your intermediate calculations and cost per unit 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 $1,025 and the market price for Model 212 is $310, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit
