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. Activity Process Overhead Cost Driver Quantity 800 Components Changeover 500,000 Number of batches Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 $1,004,000 Finishing Welding 180,300 Welding hours 3,000 700 Inspecting 210,000 Number of inspections 300 Rework 75.000 Rework orders 465,300 450 Support Purchasing 135,000 Purchase orders 5,000 Providing space 32,000 Number of units Providing utilities 65.000 Number of units 5,000 232,000 Additional production information concerning its two product lines follows. Model 145 Model 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 Rework orders 160 140 Purchase orders 300 150