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	$ 310,600	Machine hours (MH)	7,600
	Setups	28,000	Setups	240
		$ 338,600
Finishing	Inspecting	$ 234,000	Inspections	900
Support	Purchasing	$ 134,000	Purchase orders	510

Additional production information concerning its two models follows.

Units and Activities	Model X	Model Z
Units produced	2,200	4,400
Machine hours	2,200	5,400
Setups	80	160
Inspections	540	360
Purchase orders	340	170

Per Unit	Model X	Model Z
Selling price per unit	$ 410	$ 390
Direct materials cost per unit	145	120
Direct labor cost per unit	140	140

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).