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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. table [ [
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow.
tableActivity,udgeted Cost,Activity Cost Driver,tableBudgetedActivityAssemblyMachining,$Machine hours MHSetupsSetups,$FinishingInspecting,$Inspections,SupportPurchasing,$Purchase orders,
Additional production information concerning its two models follows.
tableModel XModel ZUnits and Activities,Units produced,Machine hours,SetupsInspectionsPurchase orders,,,Per Unit,Model XModel ZSelling price per unit,$$Direct materials cost per unit,Direct labor cost per unit,
For each model, compute the gross profit per unit selling price per unit minus product cost per unitRound "Product cost per unit" and "Gross Profit" to decimal places and other intermediate calculations to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign.
tablePer Unit,Selling Price,Product cost per unit,Gross ProfitModel XModel Z
Compute the activity rate for each activity using activitybased costing. Round "Activity rate" to decimal places.
tableActivityBudgeted Cost,Budgeted Activity Usage,Activity RateMachiningSetupsInspectingPurchasing
Compute the total product cost per unit for each model. Round "Activity Rate" to decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to decimal places.
tablePer Unit,Direct Materials,Direct Labor,Overhead,Product Cost per UnitModel XModel Z
Using activitybased costing, compute the overhead cost per unit for each model. Round "Activity Rate" to decimal places and other answers to the nearest whole dollar amount.
tableOverhead cost per unitModel XActivityActivity Usage,Activity Rate,Allocated CostMachiningSetupsInspectionPurchasingTotal allocated costUnits producedOverhead cost per unitOverhead cost per unitModel ZActivityActivity Usage,Activity Rate,Allocated CostMachiningSetupsInspectionPurchasingTotal allocated costUnits producedOverhead cost per unit,,,
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