Exercise 17-9 Using ABC to assess prices LO P3 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 Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 730 7,790 180 Overhead Cont $ 427,050 356.003 338, 400 $1,121,453 $ 296,940 301,750 31,500 $ 630, 190 Finishing Welding Inspecting Rework Welding hours Number of inspections Rework orders 4,900 850 150 Support S Purchasing Providing space Providing utilities 153.725 30.600 27,000 Purchase orders Number of units Number of units 3.000 3,000 Additional production Information concerning its two product lines follows. Model 212 2.000 3.500 Model 145 1.000 1.400 365 520 2,450 Units produced Welding hours Batches Number of inspections Machine hours Setups Pework Orders Purchase orders 365 330 5,340 70 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 $220 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $1123.16 and the market price for Model 212 is $644.72, determine the profit or loss per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Reqs 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Expected Costs Model 145 Activity driver Overhead incurred assigned Activity Activity Rate Expected Activity Model 212 Activity driver Overhead incurred assigned Components Changeover $ 730 Number of batches 427050 356.003 338.400 7.790 Machine hours 180 Setups Serups Finishing Welding 206040 301.750 31.500 4.900 Welding hours 850 Inspections 150 Rework orders Purchase orders 43 P 3.000 un 57.60 $ 0 Total overhead cost Total units produced Overhead color Required 2 > 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 $220 for Model 145 and $114 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 $220 for Model 145 and $114 for Model 212. 3. If the market price for Model 145 is $1,123.16 and the market price for Model 212 is $644.72, 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 Required 3 loss per unit for each model. (ROL d the market price for Model 212 is $644.72, determine the profit or swers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (los) per unit