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. Process Assembly Activity Machining Setups Budgeted Activity Budgeted Cost $ 310,800 28,000 $ 338,800 Activity Cost Driver Machine hours (MH) Usage 8,000 Setups 120 Finishing Support Inspecting $ 226,000 Purchasing $ 136,000 Inspections 700 Purchase orders 510 Additional production Information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model X Model Z 2,000 4,000 2,400 5,600 40 80 460 240 340 178 Per Unit Model X Model Z Selling price per unit $ 415 Direct materials cost per unit Direct labor cost per unit 150 145 $ 395 110 150 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