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 $ 311,400 26,000 $ 337,400 Activity Cost Driver Machine hours (MH) Usage 7,800 Setups 180 Finishing Support Inspecting $234,000 Purchasing $132,000 Inspections 860 Purchase orders 540 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 5,400 60 120 500 360 360 180 Model X Model Z $405 $385 150 105 135 145 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).