Question: need some help Exercise 17-9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the



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 overhead Cost Driver Quantity Components Changeover $ 500,000 Number of batches 800 Machining 279.000 Machine hours 6.000 Setups 225,000 Number of setups 120 $1,004,000 Finishing Welding 5 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 465,300 Support Purchasing 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 S 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 1,500 800 400 400 1,800 60 160 300 Model 212 3,500 2,200 400 300 4,200 60 140 150 Required: Required 2 Required 3 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimal places.) Expected Costs Expected Activity Activity Rate Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned 5 500,000 279,000 225.000 800 Number of batches 6,000 Machine hours 120 Setups Activity Components Changeover Machining Setups Finishing Welding Inspecting Rowon Support Purchasing Providing space and bles $ 180.500 210,000 75.000 3.000 Welding hours 700 Inspection 300 Rework orders 5 135.000 97000 450 purchase orders 8.000 Unte Total overhead cost Total produced Overhead cost per un Required 2 > TTTT 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 $250 145 and $180 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 Required 2 Required 3 If the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per each model. (Round your final answers to 2 decimal places.) Model 145 Model 212 Price per unit Cost per unit Profit (loss) per unit
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