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Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and gross profit LO P3 Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow Process Assembly Activity Machining Setups Activity Cost Driver Machine hours (H) Setups Budgeted Activity Usage 7,600 120 Budgeted Cost $ 310, 600 28.000 $ 338,600 5 224, eee $ 132,000 820 Finishing Support Inspecting Purchasing Inspections Purchase orders 510 Additional production information concerning its two models follows Units and Activities Units produced Machine hours Setups Model X 1,400 2,200 40 Model z 2,500 5,400 be 820 Finishing Support Inspecting Purchasing $ 224,000 $ 132,000 Inspections Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model X 1,400 2,200 40 540 340 Model z 2,800 5,488 80 280 170 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X $ 405 155 140 Model 2 $385 105 125 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) Required 1 Required 2 Required 3 Required 4 Using activity-based costing, compute the overhead cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Overhead cost per unit-Model Allocated Activity Activity Usage Activity Rate Cost Machining 2.200 MH Setups 40 Setups inspection 540 Inspections Purchasing 340 orders Total allocated cost 0 Units produced Overhead cost per OOOO unit Overhead cost per unit-Model Z Activity Activity Usage Allocated Activity. Rate Activity Rate Allocated Cost Overhead cost per unit--Model Z Activity Activity Usage Machining 5,400 MH Setups 80 setups Inspection 280 inspections Purchasing 170 orders Total allocated cost Units produced Overhead cost per unit OOO 0 0 Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 * Compute the total product cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places. Overhead Product Cost per Unit Per Unit Model X Model Z Direct Materials 155.00 105 00 s Direct Labor 140.00 125.00 Required 1 Required 2 Required 3 Required 4 For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). (Round "Product cost per unit" and "Gross Profit" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign.). Per Unit Selling Price Product cost per unit Gross Profit Model X 405 Model Z 385

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