Process Components Activity Changeover Number of batches Machining Machine hours Setups 225,000 Number of setups 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. Overhead Cost $ 500,000 279,000 Quantity 800 6,000 120 Driver Finishing Welding Inspecting $1,004,000 $ 180,300 210,000 Welding hours 3,000 Number of inspections 700 Rework 75,000 Rework orders 300 $ 465,300 Support Purchasing $ 135,000 Purchase orders 450 Providing space Providing utilities 32,000 65,000 Number of units 5,000 Number of units 5,000 $ 232,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,500 3,500 Welding hours 800 2,200 Batches 400 400 Number of inspections 400 300 Machine hours 1,800 4,200 Setups 60 60 Rework orders 160 140 Purchase orders 300 150