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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

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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 Setups Process Overhead Cost Driver Number of batches Quantity 830 518,750 380,722 111,000 Machine hours 8,170 Number of setups 60 $1,010,472 Finishing Welding Inspecting Rework S 303,850 Welding hours Number of inspections Rework orders 5,900 840 230 315,000 51,750 S 670,600 Purchasing Providing space Providing utilities Support 225,200 30,700 59,540 Purchase orders 563 Number of units 4,800 Number of units 4,800 315,440 Additional production information concerning its two product lines follows. Model 212 3,200 3,500 415 360 Model 145 1,600 2,400 Units produced Welding hours Batches 415 480 Number of inspections Machine hours 5,320 30 2,850 30 130 375 Setups Rework orders Purchase orders 100 188 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 $200 for Model 145 and $111 for Model 212 3. If the market price for Model 145 is $800.97 and the market price for Model 212 is $435.17, determine the profit or loss per unit for Next>

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