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. Driver Number of batches Process Activity Components Changeover Machining Setups Overhead Cost $ 478,000 314,000 234,000 Quantity 770 8,080 200 Machine hours Number of setups $1,026,000 Finishing $ Welding Inspecting Rework 184,000 226,000 64,000 Welding hours Number of inspections Rework orders 4,000 815 220 $ 474,000 Support Purchasing Providing space Providing utilities $ 135,000 37,500 68,000 $ 240,500 Purchase orders Number of units Number of units 525 4,620 4,620 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Model 145 1,600 800 385 465 2,750 100 110 350 Model 212 3,020 3,200 385 350 5,330 100 110 175 Setups Rework orders Purchase orders 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 $220 for Model 145 and $150 for Model 212. 3. If the market price for Model 145 is $2,000 and the market price for Model 212 is $280, determine the profit or loss per unit for each model. Components department 01 Finishing department O Support department 0 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components $ Oo Finishing $ Support 0 Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components $ 0 Finishing $ 0 Support 0 Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit