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	$ 311,000	Machine hours (MH)	7,400
	Setups	24,000	Setups	120
		$ 335,000
Finishing	Inspecting	$ 230,000	Inspections	800
Support	Purchasing	$ 132,000	Purchase orders	510

Additional production information concerning its two models follows.

Units and Activities	Model X	Model Z
Units produced	2,000	4,000
Machine hours	2,000	5,400
Setups	40	80
Inspections	500	300
Purchase orders	340	170

Per Unit	Model X	Model Z
Selling price per unit	$ 415	$ 395
Direct materials cost per unit	155	110
Direct labor cost per unit	145	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).