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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	Overhead Cost				Driver	Quantity
Components	Changeover		$	476,000		Number of batches	850
	Machining			309,000		Machine hours	7,800
	Setups			232,000		Number of setups	80
			$	1,017,000
Finishing	Welding		$	192,000		Welding hours	5,500
	Inspecting			220,000		Number of inspections	880
	Rework			61,000		Rework orders	250
			$	473,000
Support	Purchasing		$	139,000		Purchase orders	537
	Providing space			31,500		Number of units	5,170
	Providing utilities			70,000		Number of units	5,170
			$	240,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,100			3,070
Welding hours		1,400			4,100
Batches		425			425
Number of inspections		520			360
Machine hours		2,450			5,350
Setups		40			40
Rework orders		150			100
Purchase orders		358			179

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 are $200 for Model 145 and $180 for Model 212. 3. If the market price for Model 145 is $950 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.

Hop Save & Chapter 4 Homework 2 Way Cool produces two diflerent models of air conditioners. The company produces the mechanical systems in department. The mechanical systems are combined with drivers associated with these two manufacturing processes and the production support process the housing assembly i n its finishing department. The activities, costs, and 254 inLahing Weld Enapect ing Support Prchaaing aber of nite Additional production information cenceening its two product lines foilows

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