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		$	461,250		Number of batches	750
	Machining			380,765		Machine hours	8,050
	Setups			148,400		Number of setups	80
			$	990,415
Finishing	Welding		$	355,160		Welding hours	5,200
	Inspecting			349,575		Number of inspections	885
	Rework			57,500		Rework orders	250
			$	762,235
Support	Purchasing		$	178,200		Purchase orders	540
	Providing space			31,100		Number of units	7,800
	Providing utilities			113,200		Number of units	7,800
			$	322,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,600			5,200
Welding hours		1,400			3,800
Batches		375			375
Number of inspections		495			390
Machine hours		2,750			5,300
Setups		40			40
Rework orders		150			100
Purchase orders		360			180

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 $200 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $557.32 and the market price for Model 212 is $337.14, 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	$461,250	750	Number of batches
Machining	380,765	8,050	Machine hours
Setups	148,400	80	Setups
Finishing
Welding	$355,160	5,200	Welding hours
Inspecting	349,575	885	Inspections
Rework	57,500	250	Rework orders
Support
Purchasing	$178,200	540	Purchase orders
Providing space and utilities	144,300	7,800	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 $200 for Model 145 and $116 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 $557.32 and the market price for Model 212 is $337.14, 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