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.

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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 $250 for Model 145 and $180 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit 250.00 $ 180.00 Overhead cost per unit 3,500.00 340.26 Total cost per unit $3,750.00 $ 520.26 $ 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 $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Price per unit Cost per unit Profit (loss) per unit Model 145 Model 212 $ 800.00 $ 470.00 590.26 520 26 $ 209.74 $ 50.26