Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Budgeted Activity Activity Machining Setups Budgeted Cost $ 311,200 28,000 Activity Cost Driver Machine hours (MH) Usage 7,200 Setups 180 $ 339,200 Finishing Support Inspecting $ 228,000 Purchasing $ 138,000 Inspections 780 Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Model X Model Z 1,400 2,800 Machine hours Setups Inspections Purchase orders 2,000 5,200 60 120 460 320 340 170 Per Unit Selling price per unit Model X $ 410 Model Z $ 390 Direct materials cost per unit 155 Direct labor cost per unit 130 115 145 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).