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 Components Activity Changeover Machining Setups Driver Number of batches Machine hours Number of setups Quantity 870 8,490 40 Finishing Welding Inspecting Rework Overhead Cost $ 595,950 397,332 75,200 $1,068,482 $ 295,960 322,200 55,350 $ 673,510 $ 175,680 30,700 56,150 $ 262,530 Welding hours Number of inspections Rework orders 4,900 895 270 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 488 4,500 4,500 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 1,800 435 495 3,150 Model 212 3,000 3,100 435 400 5,340 20 20 150 120 163 325 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 $122 for Model 212. 3. If the market price for Model 145 is $841.60 and the market price for Model 212 is $475.00, 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 Using ABC, compute the overhead cost per unit for each product line. (Round your final answers to 2 decimals places.) Model 145 Activity driver Overhead incurred assigned Model 212 Activity driver Overhead incurred assigned Expected Costs Expected Activity Activity Rate $ Activity Components Changeover Machining Setups Finishing 595,950 397,332 75,200 870 Number of batches 8,490 Machine hours 40 Setups Welding 295,960 322,200 55,350 4,900 Welding hours 895 Inspections 270 Rework orders Inspecting Rework Support Purchasing Providing space and utilities 175,680 86,850 488 Purchase orders 4,500 Units Total overhead cost Total units produced Overhead cost per unit Required 1 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 $210 for Model 145 and $122 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 $841.60 and the market price for Model 212 is $475.00, 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