Exercise 4-17 (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 Process Assembly Activity Machining Setups Budgeted Cost $310,200 24,000 $334,200 Activity Cost Driver Machine hours (MH) Usage 8,000 Setups 120 ences Finishing Support Inspecting Purchasing $ 226,000 $136,000 Inspections 840 Purchase orders 450 Mc Graw Hil Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Per Unit Selling price per unit Model X Model Z 1,600 3,200 2,400 5,600 40 80 500 340 300 150 Model X $410 145 Hodel 2 $390 120 120 135 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 ones nenfit nar unit fallinn nice ner unit minue nutnet enstar unin < Prev 4 of 7 Next > 135 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 41 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Rate Activity Machining Budgeted Cost $ 310,200 Setups Inspecting Purchasing 24,000 226,000 Budgeted Activity Usage 8,000 machine hours $ 38 78 per machine hour 120 setups $ 200.00 per setup 840 inspections 269 05 per inspection 136,000 450 purchase orders $ 302 22 per purchase order Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4. Using activity-based costing, compute the overhead cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Overhead cost per unit-Model X Activity Activity Usage Activity Rate Allocated Cost Machining 2,400 MH $ 38.78 per MH $ 93,072 Setups 40 setups S 200.00 per setup 8,000 Inspection 500 inspections $ 269 05 per inspection 134,525 Purchasing 300 orders $ 302 22 per order 90,666 Total allocated cost $ 326,263 Units produced 1,600 Overhead cost per unit $ 203.91 Overhead cost per unit-Model Z Activity Activity Usage Activity Rate Allocated Cost Machining 5,600 MH $ 38.78 per MH 217,168 Setups 80 setups $ 200.00 per setup 16,000 Inspection 340 inspections $ 269.05 per inspection 91,477 Purchasing 150 orders $ 302 22 per order 45,333 Total allocated cost $ 369,978 Units produced Overhead cost per unit 3,200 $ 115.62 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. tes Required 1 Required 2 Required 3 Required 4 Compute the total product cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other intermediate 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 $ 145.00 $ 120 00 Product Cost per Unit 120.00 $ 204.00 S 135.00 116.00 469.00 371.00 < Required 2 Required 4 > Book Hint Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X $ 410 145 120 Model Z $390 120 135 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. Print erences 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). (Round "Product cost per unit" and "Gross Profit" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign.) Per Unit Model X Model Z Selling Price 410 Product cost per unit Gross Profit S 390 469.00 371.00 (59.00) 19.00