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Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Activity Budgeted Cost
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly Machining $ 311,200 Machine hours (MH) 8,000 Setups 24,000 Setups 180 $ 335,200 Finishing Inspecting $ 230,000 Inspections 880 Support Purchasing $ 132,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Model X Model Z Units produced 1,800 3,600 Machine hours 2,400 5,600 Setups 60 120 Inspections 520 360 Purchase orders 360 180 Per Unit Model X Model Z Selling price per unit $ 410 $ 390 Direct materials cost per unit 150 120 Direct labor cost pe
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