Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production

processes follow.

$1.$ 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$).$