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		$	434,350		Number of batches	730
	Machining			385,518		Machine hours	8,220
	Setups			219,000		Number of setups	120
			$	1,038,868
Finishing	Welding		$	311,880		Welding hours	4,600
	Inspecting			301,550		Number of inspections	815
	Rework			31,850		Rework orders	130
			$	645,280
Support	Purchasing		$	196,170		Purchase orders	503
	Providing space			31,800		Number of units	4,500
	Providing utilities			53,250		Number of units	4,500
			$	281,220

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,500			3,000
Welding hours		800			3,800
Batches		365			365
Number of inspections		475			340
Machine hours		2,950			5,270
Setups		60			60
Rework orders		80			50
Purchase orders		335			168

Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $116 for Model 212. 3. If the market price for Model 145 is $823.01 and the market price for Model 212 is $480.28, determine the profit or loss per unit for each model.

Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.)

						Model 145		Model 212
Activity	Expected Costs	Expected Activity		Activity Rate		Activity driver incurred	Overhead assigned	Activity driver incurred	Overhead assigned
Components
Changeover	$434,350	730	Number of batches
Machining	385,518	8,220	Machine hours
Setups	219,000	120	Setups
Finishing
Welding	$311,880	4,600	Welding hours
Inspecting	301,550	815	Inspections
Rework	31,850	130	Rework orders
Support
Purchasing	$196,170	503	Purchase orders
Providing space and utilities	85,050	4,500	Units
					Total overhead cost		$0		$0
					Total units produced
					Overhead cost per unit

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $116 for Model 212. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Materials and Labor per unit
Overhead cost per unit
Total cost per unit

If the market price for Model 145 is $823.01 and the market price for Model 212 is $480.28, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.)

	Model 145	Model 212
Price per unit
Cost per unit
Profit (loss) per unit