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Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Process Activity Budgeted
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Process Activity Budgeted Cost Activity Cost Driver Activity Usage Assembly Machining $ 279,000 Machine hours (MH) 6,000 Finishing Inspecting $ 210,000 Inspections 700 Additional production information concerning its two models follows. Units and Activities Model X Model 2 Units produced 1,724 3,463 Machine hours 1,800 4,200 Inspections 400 300 Per Unit Model X Model Z Direct materials cost per unit 100 90 Direct labor cost per unit 150 160 Please enter a number in each blank. 1. Compute the activity rate for each activity using activity-based costing. _ -_per mm W Inspecting _ 2. Using activity-based costing, compute the overhead cost per unit for each model. Overhead cost per unit-Model X Activity Activity Usage X Activity Rate Allocated Cost Machining Inspection Total allocated overhead cost Units produced 1,724 Overhead cost per unit - round to nearest whole number Overhead cost per unit-Model Z Activity Activity Usage x Activity Rate Allocated Cost Machining Inspection Total allocated overhead cost Units produced 3,463 Overhead cost per unit - round to nearest whole number
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