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. Budgeted Activity 21-33 Process Activity Budgeted Cost Activity Cost Driver Usage Assembly Machining $ 310, 000 Machine hours (MH) 7, 600 Setups 22,000 Setups 120 $ 332,000 Finishing Inspecting 000'+zz $ Inspections 780 Support Purchasing $ 132, 000 Purchase orders 540 Additional production information concerning its two models follows. Units and Activities Model x Model Z Units produced 1, 800 3,600 Machine hours 2, 200 5, 400 Setups 40 80 Inspections 460 320 Purchase orders 360 180 Per Unit Model X Model Z Selling price per unit $ 415 $ 395 Direct materials cost per unit 155 105 Direct labor cost per unit 136 125 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). Complete this question by entering your answers in the tabs below.