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Exercise 17-9 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of alr 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. PEOCHRtivity Overhead Cont Dever Quantity Componente Changeover $450,000 Number of batches 910 Machining 305,000 Machine hours 0.100 Setupe 227.000 Number of setup 60 990,000 Tinishing Welding $ 194,000 Welding hours 3.900 Inspecting 226,000 Number of inspections 925 Rework 60.500 Rework orders 400, 500 Support Purchasing $147,000 Purchase orders Providing space 33,000 Number of units 4,010 Providing stilities 70.000 Number of units 4,010 $ 250.000 270 555 Additional production Information concerning its two product lines follows. Model 15 Model 12 Units produced 1.700 3.110 Holding hours 1,000 2.900 Batches 455 455 Number of inspections 495 330 Machine hours 2.750 5,350 Setup 30 30 Rework orders 160 110 Purchase orders 370 15 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Bose your overhead 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 ate $290 for Model 145 and $160 for Model 212. 3. If the market price for Model 145 is $1,400 and the market price for Model 212 is $300, determine the profit or loss per unit for each model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Finishing department Support department 7 Components department Finishing department 12.5 polnts Support department eBook Hint Activity Driver Total Overhead Cost Model 145 Departmental OH Rato Components Finishing Support Print References Model 212 Activity Driver Dopartmental OH Rate Total Overhead Cost Components Finishing Support Required 2 > Mc Graw Hill Required i Required 2 Required 3 If the market price for Model 145 is $1,400 and the market price for Model 212 is $300, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places. Model 145 Model 212 Market price per unit Cost per unit Profit (105) per unit Required 2 Required

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