Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Activity Budgeted Cost Machining $ 310,600 Setups 26,000 $ 336,600 $ 224,000 $ 134,000 Finishing Support Additional production information concerning its two models follows. Inspections Purchase orders Inspecting Purchasing Units and Activities Units produced Machine hours. Setups Model X 1,400 2,200 40 500 340 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model Z 2,800 5,400 Model X $ 410 155 125 Activity Cost Driver Machine hours (MH) Setups 80 280 170 Inspections Purchase orders Model Z $ 390 100 125 Budgeted Activity Complete this question by entering your answers in the tabs below. Usage 7,600 120 780 510 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).

Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Additional production information concerning its two models follows. 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