(Solved): Ice Cool produces two different models of air conditioners. The activities, costs, and cost driver ...

Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Activity Activity Usage Process Assembly Budgeted Cost $ 310,800 Machining Setups Activity Cost Driver Machine hours (MH) Setups 7,200 120 24,000 $ 334,800 Finishing Inspecting $ 228,000 Inspections 780 Support Purchasing $ 130,000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Model Z Units produced Model X 2,000 2,000 4,000 5,200 Machine hours Setups 40 80 Inspections 480 300 Purchase orders 360 180 Per Unit Model X Model Z Selling price per unit $ 410 $ 390 Direct materials cost per unit 155 100 Direct labor cost per unit 135 155 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). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Machining