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.

Process	Activity	Overhead Cost				Driver	Quantity
Components	Changeover		$	550,550		Number of batches	910
	Machining			363,475		Machine hours	7,750
	Setups			400,400		Number of setups	220
			$	1,314,425
Finishing	Welding		$	289,520		Welding hours	5,600
	Inspecting			333,750		Number of inspections	890
	Rework			51,000		Rework orders	200
			$	674,270
Support	Purchasing		$	176,700		Purchase orders	465
	Providing space			31,600		Number of units	4,200
	Providing utilities			48,200		Number of units	4,200
			$	256,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,400			2,800
Welding hours		2,000			3,600
Batches		455			455
Number of inspections		520			370
Machine hours		2,450			5,300
Setups		110			110
Rework orders		120			80
Purchase orders		310			155

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 $190 for Model 145 and $121 for Model 212. 3. If the market price for Model 145 is $950.47 and the market price for Model 212 is $543.32, determine the profit or loss per unit for each model.

Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.)

						Model 145		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$550,550	910	Number of batches
Machining	363,475	7,750	Machine hours
Setups	400,400	220	Setups
Finishing
Welding	$289,520	5,600	Welding hours
Inspecting	333,750	890	Inspections
Rework	51,000	200	Rework orders
Support
Purchasing	$176,700	465	Purchase orders
Providing space and utilities	79,800	4,200	Units
					Total overhead cost
					Total units produced
					Overhead cost per unit

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $121 for Model 212. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Materials and Labor per unit
Overhead cost per unit
Total cost per unit

If the market price for Model 145 is $950.47 and the market price for Model 212 is $543.32, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Price per unit
Cost per unit
Profit (loss) per unit