Exercise 17-11 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 mech systems are combined with the housing assembly in its finishing department activities, costs, and drivers associated with these two manufacturing proces and the production support process follow. Process Activity Components Changeover Machining Setups Quantity 890 7,750 180 Finishing Welding Inspecting Rework Overhead Cost Driver $ 574,050 Number of batches 363,475 Machine hours 324,000 Number of setups $1,261,525 $ 380,400 Welding hours 324,375 Number of inspections 51,000 Rework orders $ 755,775 $ 153, 415 Purchase orders 31,300 Number of units 122,600 Number of units $ 307,315 6,000 865 170 Support Purchasing Providing space Providing utilities 503 8,100 8,100 Additional production information concerning its two product lines follows. Model 212 5,400 3,800 445 Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 2,700 2,200 445 465 2.450 90 100 335 400 5,300 90 70 168 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 $240 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $633.66 and the market price for Model 212 is $353.42, determine the profit or loss per unit for each model. Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Conts Expected Activity Activity Rate Model 145 Model 212 Activity driver Overhead Activity driver Overhead incurred assigned assigned Incurred $ 574,050 363.475 324,000 300 Number of batches 7.750 Machine hours 180 Setups Activity Componente Changeover Machining Sebups Finishing Welding Inspecting Rework Support Purchasing Providing space and is $ 350.400 324 375 51.000 8.000 Welding hours 365 Inspections 170 Reworld $ 153415 153.900 503 Purchase orders 3.100 Units Total ovados Total produced Overhead cool per unit direct materials costs per unit are $240 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $633.66 and the market price for Model 212 is $353.42, 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 $240 for Model 145 and $119 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 Ren SCARVAS direct materials costs per unit are $240 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $633.66 and the market price for Model 212 is $353.42, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 If the market price for Model 145 is $633.66 and the market price for Model 212 is $353.42, determine the profit or loss per unit for each model. (Round your final answers to 2 decimal places.) Show less Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit