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	$ 279,000	Machine hours (MH)	6,000
	Setups	24,000	Setups	120
		$ 303,000
Finishing	Inspecting	$ 210,000	Inspections	700
Support	Purchasing	$ 135,000	Purchase orders	450

Additional production information concerning its two models follows.

Units and Activities	Model X	Model Z
Units produced	1,724	3,463
Machine hours	1,800	4,200
Setups	40	80
Inspections	400	300
Purchase orders	300	150

Per Unit	Model X	Model Z
Selling price per unit	$ 420	$ 400
Direct materials cost per unit	100	90
Direct labor cost per unit	150	160

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).

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.)

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.)

Overhead cost per unitModel X
Activity	Activity Usage		Activity Rate		Allocated Cost
Machining
Setups
Inspection
Purchasing
Total allocated cost
Units produced
Overhead cost per unit
Overhead cost per unitModel Z
Activity	Activity Usage		Activity Rate		Allocated Cost
Machining
Setups
Inspection
Purchasing
Total allocated cost
Units produced
Overhead cost per unit

Compute the total product cost per unit for each model. (Do not round intermediate calculations.)

Per Unit	Direct Materials	Direct Labor	Overhead	Product Cost per Unit
Model X
Model Z

For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). (Do not round intermediate calculations. Negative amounts should be indicated with a minus sign.)

Per Unit	Selling Price	Product cost per unit	Gross Profit
Model X
Model Z