Question
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Finishing
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Finishing Support Budgeted Activity Activity Machining Setups Budgeted Cost $ 310,800 24,000 $ 334,800 Activity Cost Driver Machine hours (MH) Setups Usage 7,200 120 Inspecting Purchasing $ 228,000 $ 130,000 Inspections 780 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model X 2,000 Model Z 4,000 2,000 5,200 40 80 480 300 360 180 Per Unit Model X Model Z Selling price per unit $ 410 Direct materials cost per unit 155 Direct labor cost per unit 135 $ 390 100 155 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). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Machining Budgeted Cost Budgeted Activity Usage Activity Rate
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