Enabled: Test $2$: Chapters $4-7$

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Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow.

Additional production information concerning its two models follows.

$\backslash$table$[[$Units and Activities,Model X$,$Model, Z$],[$Units produced,$1,400,2,800],[$Machine hours,$2,200,5,000],[$Setups$,60,120],[$Inspections$,500,300],[$Purchase orders,$300,150]]$

$\backslash$table$[[,$Per Unit,Model X$,$Model$],[$Selling price per unit,$$400,$Z$,],[$Direct materials cost per unit,$155,115,],[$Direct labor cost per unit,$145,125,]]$

Compute the activity rate for each activity using activity$-$based costing

Using activity$-$based costing, compute the overhead cost per unit for each model.

Compute the total product cost per unit for each model.

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 total product cost per unit for each model.

Note: 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

$\backslash$table$[[$Per Unit,Direct Materials,Direct Labor,Overhead,Product Cost per Unit$],[$Model X$,,,,],[$Model Z$,,,,]]$

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