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.

ProcessActivityOverhead CostDriverQuantity

ComponentsChangeover $500,000 Number of batches800

Machining 279,000 Machine hours6,000

Setups 225,000 Number of setups120

$1,004,000

FinishingWelding $180,300 Welding hours3,000

Inspecting 210,000 Number of inspections700

Rework 75,000 Rework orders300

$465,300

SupportPurchasing $135,000 Purchase orders450

Providing space 32,000 Number of units5,000

Providing utilities 65,000 Number of units5,000

$232,000

Additional production information concerning its two product lines follows.

Model 145Model 212

Units produced 1,500 3,500

Welding hours 800 2,200

Batches 400 400

Number of inspections 400 300

Machine hours 1,800 4,200

Setups 60 60

Rework orders 160 140

Purchase orders 300 150

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 $250 for Model 145 and $180 for Model 212.

3. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.

Check my work 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.) Expected Costs Expected Activity Model 145 Activity driver Overhead incurred assigned Activity Rate Model 212 Activity driver Overhead Incurred $ $ 283.55 per batch 510,390 500,000 279,000 225,000 800 Number of batches 6,000 Machine hours 120 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 180,300 210,000 75,000 3,000 Welding hours 700 Inspections 300 Rework orders $ 135,000 97,000 450 Purchase orders 5,000 Units $ 0 $ 0 Total overhead cost Total units produced Overhead cost per unit Required 2 >