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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

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 $ 470,000 Number of batches 730
Machining 313,000 Machine hours 8,520
Setups 225,000 Number of setups 140
$ 1,008,000
Finishing Welding $ 186,000 Welding hours 5,100
Inspecting 234,000 Number of inspections 830
Rework 62,500 Rework orders 230
$ 482,500
Support Purchasing $ 137,000 Purchase orders 531
Providing space 31,000 Number of units 4,720
Providing utilities 65,000 Number of units 4,720
$ 233,000

Additional production information concerning its two product lines follows.

Model 145 Model 212
Units produced 1,700 3,020
Welding hours 1,800 3,300
Batches 365 365
Number of inspections 490 340
Machine hours 3,250 5,270
Setups 70 70
Rework orders 140 90
Purchase orders 354 177

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 $200 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $1,025 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.

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.)

Components department
0
Finishing department
0
Support department
0
Model 145 Activity Driver Departmental OH Rate Total Overhead Cost
Components $0
Finishing $0
Support 0
Model 212 Activity Driver Departmental OH Rate Total Overhead Cost
Components $0
Finishing $0
Support 0

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 $200 for Model 212. (Round your intermediate calculations and cost per unit 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 $1,025 and the market price for Model 212 is $320, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

Model 145 Model 212
Market price per unit
Cost per unit
Profit (loss) per unit

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