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 Cost $ 310,200 24,000 $ 334,200 Activity Cost Driver Machine hours (MH) Setups Budgeted Activity Usage 7,600 180 $ 232,000 840 Finishing Support Inspecting Purchasing Inspections Purchase orders $ 130,000 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model X 1,400 2,200 60 500 340 Model z 2,800 5,400 120 340 170 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model x $ 410 160 130 Model 2 $ 390 105 155 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 Activity Rate Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Machining machine hours Setups setups Inspecting inspections Purchasing purchase orders 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.) Activity Usage Activity Rate Allocated Cost MH Overhead cost per unitModel X Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit setups inspections orders $ 0 0 Activity Rate Allocated Cost Activity Usage MH Overhead cost per unitModel Z Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit setups inspections orders $ 0 0 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.) Direct Materials Direct Labor Overhead Product Cost per Unit Per Unit Model X Model Z 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.) Selling Price Product cost per unit Gross Profit Per Unit Model X Model Z
