Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows.

Department	Budgeted Cost	Allocation Base	Budgeted Usage
Assembly	$ 414,000	Machine hours	6,900	machine hours
Finishing	21,000	Direct labor hours	3,500	direct labor hours

Additional production information for two models of its air conditioners follows.

Per unit	Model A	Model T
Selling price	$ 500	$ 580
Direct materials	145	135
Direct labor	195	205

	Model A		Model T
Units produced	400		500
Assembly machine hours per unit	2	MH	4	MH
Finishing direct labor hours per unit	3	DLH	4	DLH

1a. Compute departmental overhead rates and determine overhead cost per unit for each model.

1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs.

2. Compute the total product cost per unit for each model.

3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. 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. Compute departmental overhead rates and determine overhead cost per unit for each model. 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. 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. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. Note: Round "Hours per unit" to one decimal place. 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. 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. Compute the total product cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. 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. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). Note: A negative gross profit should be indicated with a minus sign