Way Cool produces two different models of air conditioners. The company produces 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		$	478,000		Number of batches	790
	Machining			308,000		Machine hours	8,410
	Setups			234,000		Number of setups	100
			$	1,020,000
Finishing	Welding		$	190,000		Welding hours	6,200
	Inspecting			223,000		Number of inspections	805
	Rework			63,500		Rework orders	140
			$	476,500
Support	Purchasing		$	135,000		Purchase orders	555
	Providing space			31,500		Number of units	4,600
	Providing utilities			68,000		Number of units	4,600
			$	234,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,100
Welding hours		2,400			3,800
Batches		395			395
Number of inspections		485			320
Machine hours		3,150			5,260
Setups		50			50
Rework orders		100			40
Purchase orders		370			185

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 a 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 $160 for Model 212. 3. If the market price for Model 145 is $1,175 and the market price for Model 212 is $250, determine the profit or loss per unit for each model.

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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
		0
Finishing department
		0
Support department
		0