4 Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the two manufacturing processes and the support process follow. Budgeted 1 Activity points Process Assembly Activity Machining Setups Budgeted Cost $311,800 20,000 Cost Driver Machine hours (MH) Number of setups Usage 7,200 120 $ 331,800 eBook Finishing Inspecting $ 234,000 Number of inspections 740 Hint Support Purchasing $ 138,000 Purchase orders 480 Print Additional production information concerning its two models follows. References Units and Activities Model X Model Z Units produced 1,800 3,600 Machine hours 2,000 5,200 Setups 40 80 Inspections 460 280 Purchase orders 320 160 Per Unit Model X Model Z Direct labor cost per unit Selling price per unit Direct materials cost per unit 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the selling price per unit minus product cost per unit. $415 $395 145 115 130 155 C