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 $ 336,000 Finishing Inspecting $ 234,000 Support Purchasing $ 132,000 Budgeted Cost Activity Cost Driver Usage $ 312,000 24,000 Machine hours (MH) 7,400 Setups 60 Inspections 820 Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Inspections Setups Purchase orders Model X Model Z 2,000 4,000 2,200 5,200 20 40 540 280 340 170 Per Unit Model X Model Z Selling price per unit $ 405 Direct materials cost per unit 155 Direct labor cost per unit 145 $ 385 110 135 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).