Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Activity Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Activity Activity Rate $ 578,550 394,155 405,900 870 Number of batches 8,550 Machine hours 220 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 280,370 369,325 78,000 5,300 Welding hours 935 Inspections 260 Rework orders $ 151,140 133,200 458 Purchase orders 7,200 Units Total overhead cost Total units produced Overhead cost per unit < Required 1 Required 2 > 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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 8,550 220 Finishing Welding Inspecting Rework Overhead Cost $ 578,550 394, 155 405, 900 $1,378,605 $ 280, 370 369,325 78,000 $ 727,695 $ 151,140 31,900 101,300 $ 284,340 Welding hours Number of inspections Rework orders 5,300 935 260 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 458 7,200 7,200 Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,400 1,600 435 525 3,250 110 150 305 Model 212 4,800 3,700 435 410 5,300 110 110 153 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 $200 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $668.96 and the market price for Model 212 is $383.36, determine the profit or loss per unit for each model.
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