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Ch 17: Assignment 13 Skipped eBook Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production
Ch 17: Assignment 13 Skipped eBook Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Activity Machining Setups Units produced Machine hours Setups Inspecting Purchasing Units and Activities Inspections Purchase orders Finishing Support Additional production information concerning its two models follows. Model X 1,600 2,200 Budgeted Cost $ 311,400 26,000 $ 337,400 $ 220,000 $ 134,000 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit 40 520 360 Model Z 3,200 5,200 Model X $420 150 145 80 340 180 Activity Cost Driver Machine hours (MH) Setups Inspections Purchase orders Saved Model Z $ 400 100 145 Budgeted Activity Usage 7,400 120 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. Complete this question by entering your answers in the tabs below. 860 540 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). Help Save & Exit
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