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Help Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and gross profit LO P3 Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow Budgeted Activity 7.000 60 840 570 Process Activity Budgeted cost Assembly Activity Cost Driver Machining $ 310,000 Machine hours (M) Setups 26.000 Setup $ 336,800 Finishing Inspecting $ 232,000 Inspection Support Purchasing $ 130,000 Purchase orders Additional production Information concerning its two models follows. Units and activities Model X Model Units produced 1,800 3,600 Machine hours 2,200 5,600 Setups 20 40 Inspections 360 Purchase orders 380 190 480 150 140 $ 395 115 125 Per Unit Model Model : Selling price per unit $ 415 Direct materials cost per unit Direct labor 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 gross profit per unit (selling price per unit minus product cost per unit). Complete this question by entering your answers in the tabs below