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. ok ht Process Assembly Activity Machining ences Setups Budgeted Cost $ 311,800 28,000 $ 339,800 Finishing Inspecting $ 224,000 Support Purchasing $ 130,000 Budgeted Activity Activity Cost Driver Machine hours (MH) Usage 7,600 Setups 180 Inspections 740 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Per Unit Model X Model 2 1,800 3,600 2,200 5,400 60 120 480 260 360 180 Model X Model z $410 150 $ 390 115 120 135 Selling price per unit 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. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Machining Setups Inspecting Purchasing Budgeted Cost Budgeted Activity Usage Activity Rate Using activity-based costing, compute the overhead cost per unit for each model. (Round "Activity Rate" to 2 decimal place other answers to the nearest whole dollar amount.) Overhead cost per unit-Model X Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Model Z Activity Machining Setups: Inspection Purchasing. Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Rate Allocated Cost $ 0 Activity Usage Activity Rate Allocated Cost Required 1 Required 3 $ 0 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 S Compute the total product cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other intern calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places.) Per Unit Model X Model Z Direct Materials Direct Labor Overhead Product Cost per Unit < Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). (F per unit" and "Gross Profit" to 2 decimal places and other intermediate calculations to the nearest whol Negative amounts should be indicated with a minus sign.) Per Unit Model X Model Z Selling Price Product cost per unit Gross Profit