Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Activity Process Activity Assembly Machining Setups Finishing Support Inspecting $ 224,000 Purchasing $ 130,000 Budgeted Cost Activity Cost Driver Usage $ 311,800 26,000 $ 337,800 Machine hours (MH) 7,400 Setups 180 Inspections 840 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Units produced Model X Model Z 1,600 3,200 Machine hours Setups Inspections Purchase orders 2,200 5,200 60 120 520 320 360 180 Per Unit Selling price per unit Model X $ 405 Model Z $ 385 Direct materials cost per unit Direct labor cost per unit 150 125 110 155 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).