Exercise 04-11 Using ABC to assess prices LO P3 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 910 8,310 140 8,370 Finishing Welding Inspecting Rework Overhead Cost $ 659,750 385,584 256,900 $1,302,234 $ 293,580 273,600 35,200 $ 602,380 $ 173,250 30,900 67,530 $ 271,680 Welding hours Number of inspections Rework orders 4,200 855 160 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 495 5, 100 5,100 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 1,700 1,000 455 465 3,050 70 Model 212 3,400 3,200 455 390 5,260 70 90 70 330 165 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.) Model 145 Activity driver Overhead incurred assigned Activity Expected Costs Expected Activity Activity Rate 659,750 385,584 256,900 910 Number of batches 8,310 Machine hours 140 Setups Components Changeover Machining Setups Finishing Welding Inspecting Rework Support Purchasing Providing space and utilities $ 293,580 273,600 35,200 4,200 Welding hours 855 Inspections 160 Rework orders $ 173,250 98,430 495 Purchase orders 5,100 Units Total overhead cost Total units produced Overhead cost per unit Required 1 Required 2 > 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 $210 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $791.04 and the market price for Model 212 is $470.38, 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 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 $120 for Model 212. (Round your final answers to 2 decimal places.) Model 145 Model 212 Materials and Labor per unit Overhead cost per unit Total cost per unit 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 $210 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $791.04 and the market price for Model 212 is $470.38, 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 If the market price for Model 145 is $791.04 and the market price for Model 212 is $470.38, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit Required 2 Required 3 )