Ch 04 Ex 4-8 Saved Help Save & Exit Check my 1 Exercise 04-9 Using departmental overhead rates to assess prices LO P2 14 points 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. Skipped Process Activity Components Changeover Machining Setups Overhead Cost $ 472,000 303,000 232,000 $1,007,000 186,000 224,000 Driver Number of batches Machine hours Number of setups Quantity 730 7,970 160 eBook $ Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 6,700 880 190 61,500 Hint $ Support $ Purchasing Providing space Providing utilities 471,500 145,000 36,000 69,000 250,000 Purchase orders Number of units Number of units 477 4,420 4,420 Ask Print Additional production information concerning its two product References Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,400 2,600 365 490 2,650 80 120 318 Model 212 3,020 4,100 365 390 5, 320 80 70 159 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 $210 for Model 145 and $200 for Model 212. 3. If the market price for Model 145 is $800 and the market price for Model 212 is $330, determine the profit or loss per unit for each model. 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 Model 145 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Driver Departmental OH Rate Total Overhead Cost Components Finishing Support Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $200 for Model 212. (Round your intermediate calculations and cost per unit 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 $800 and the market price for Model 212 is $330, 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 (loss) per unit