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 Components Changeover Machining Setups Finishing Support Welding Inspecting Rework Overhead Cost Driver $500,000 Number of batche 279,000 Machine hours 225.000 Number of setups $1,004,000 Purchasing Providing spa Providing utili $180,300 210,000 75.000 $465,300 $135,000 32,000 65.000 $232,000 Welding hours Number of inspec Rework orders Purchase orders Number of units Number of units Quantity 800 6,000 120 3,000 700 300 450 5,000 5,000 Units produced Welding hours Batches Number of inspec Machine hours Setups Rework orders Purchase orders Model 145 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 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. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212. If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model. Comment on the results. Changeove Machining Setups Welding Inspecting Rework Purchasing Providing s Providing u (a) $500,000 279,000 225.000 $180,300 210,000 75.000 $135,000 32,000 65.000 $1,701,300 (b) Number of batc Machine hours Number of setu Welding hours Number of insp Rework orders Purchase order Number of units Number of units 800 6,000 120 3,000 700 300 450 5,000 5,000 CO! (a)

Way Cool produces two different models of air conditioners. The company produces the mechanical syslems 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 fwo manufacturing processes and the production support process follow Way Cool produces two different models of air conditioners. The company produces the mechanical syslems 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 fwo manufacturing processes and the production support process follow