Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its 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 $ 466,000 Number of batches 8.30 Machining 306,000 Machine hours 8,330 Setups 230,000 Number of setups 100 $1,002,000 Finishing Welding $ 192,000 Melding hours 4,200 Inspecting 226,000 Number of inspections 925 Rework 61,500 Rework orders 190 $ 479,500 Support Purchasing $ 139,000 Purchase orders 549 Providing space 31,000 Number of units 4,790 Providing utilities 62,000 Number of units 4,790 $ 232,000 Additional production information concerning its two product lines follows. Model 212 Units produced Welding hours Batches Number of inspections Machine hours Model 145 1,700 1,000 415 525 3.050 3,090 3,200 415 400 5,280 Additional production information concerning its two product lines follows Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,700 1,000 415 525 3,050 50 130 366 Model 212 3,090 3,200 415 400 5,280 50 60 183 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 $260 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is 51.775 and the market price for Model 212 is $320, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 1 Required 2 Required 3 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.) Show less Components department Finishing department Support department Activity Driver Model 145 Departmental OH Rate Total Overhead Cost Components Cla Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Required Required 2 > 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 $260 for Model 145 and $120 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 Required 1 Required 2 Required 3 If the market price for Model 145 is $1,775 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
