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 (1) Setups Budgeted Activity Usage 7,600 180 Budgeted cost $ 311,000 28.000 $ 339,000 $ 2 $ 226,800 $ 138,000 740 Finishing Support Inspecting Purchasing Inspections Purchase orders 510 Additional production information concerning its two models follows ences Model 2 2,800 Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model x 1,400 2,200 60 460 340 5,400 120 28 170 Model z $ 400 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X 5420 150 120 105 155 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)