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 $ 462,000 Number of batches 770 Machining 311, eee Machine hours 7,9ee Setups 227.ee Number of setups 60 $1,eee, eee Finishing Welding $ 186,000 Welding hours 4,820 Inspecting 227,000 Number of inspections ses Rework 63, Rework orders 210 $ 476,000 Support Purchasing $ 139,000 Purchase orders 495 Providing space 34,00 Number of units 4,670 Providing utilities 64.ee Number of units 4,670 237, see 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 1.60e 800 385 495 2,550 30 90 330 Model 212 3,070 4,000 385 410 5,350 3e 120 265 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 and $210 for Model 212 3. If the market price for Model 145 is $1,400 and the market price for Model 212 is $270. determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $1,400 and the market price for Model 212 is $270, 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 Required 1 Required 2 Required 3 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 $210 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $1,400 and the market price for Model 212 is $270, 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
