Refer to the information in Exercise to answer the following requirements.

In exercise

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 $250 for Model 145 and $180 for Model 212.
3. If the market price for Model 145 is $800 and the market price for Model 212 is $470, determine the profit or loss per unit for each model. Comment on the results.

Activity Overhead Cost Driver Components Changeover 500,000 279,000 225,000 $1,004,000 Number of batches Machine hours Number of setups 800 6,000 120 Machining Setups Finishing Welding Inspecting Rework $ 180,300 210,000 75,000 465,300 Welding hours Number of inspections Rework orders 3,000 700 300 Purchasing Providing space Providing utilities $ 135,000 32,000 65,000 232,000 450 5,000 5,000 Support Purchase orders Number of units Number of units Model 145 Model 212 Units Produced . . . . Welding hours.. Batches Number of inspections. Machine hours... Setups Rework orders... Purchase orders 1,500 800 400 400 1,800 60 160 300 3,500 2,200 400 300 4,200 60 140 150