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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

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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 Components Changeover Machining Setups Quantity 710 8.040 120 4.600 Finishing Welding Inspecting Rework Overhead Cost Driver $ 468,000 Number of batches 102.000 Machine hours 229.000 Number of setups $1,004,000 $ 182,000 Welding hours 221,000 Number of inspections 63,500 Rework orders $ 466.500 $ 145,000 Purchase orders Number of units 70,000 Number of units $ 246,000 840 220 Support Purchasing Providing space Providing utilities 519 4,570 4,570 Additional production information concerning its two product lines follows Units produced Model 165 1.500 1.600 Model 212 3.070 3.000 Batches Number of inspections 2.750 Rework orders Purchase orders Check 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 $240 for Model 145 and $130 for Model 212. 3. If the market price for Model 145 is $1,100 and the market price for Model 212 is $320, determine the profit or loss per unit for each model. points Book Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 reces 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

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