Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Activity Assembly Machining Setups Budgeted Cost $ 310,600 24,000 $ 334,600 Finishing Inspecting $ 232,000 Support Purchasing $ 136,000 Budgeted Activity Activity Cost Driver Usage Machine hours (MH) 7,600 Setups 180 Inspections 740 Purchase orders 570 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 1,800 3,600 2,200 5,400 60 120 500 240 380 190 Model X Model Z $ 400 155 145 $ 380 105 125 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 gross profit per unit (selling price per unit minus product cost per unit).