Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated...
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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. Budgeted Activity Usage 7,600 Activity Machining Budgeted Cost $ 311,000 22,000 $ 333,000 Activity Cost Driver Machine hours (MH) Process Assembly Setups Setups 60 Finishing Inspecting $ 234,000 Inspections 780 Support Purchasing $ 130,000 Purchase orders 480 Additional production information concerning its two models follows. Units and Activities Model X Model z Units produced Machine hours 1,600 2,200 3,200 5,400 Setups Inspections Purchase orders 20 40 520 260 320 160 Per Unit Model X Model Z $ 415 $ 395 Selling price per unit Direct materials cost per unit Direct labor cost per unit 160 115 145 135 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 pl. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Machining Setups Inspection Purchasing < Required 1 Required 2 > 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 X Activity Activity Usage Activity Rate Allocated Cost Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Model Z Activity Activity Usage Activity Rate Allocated Cost Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit < Required 1 Required 3 > Required 1 Required 2 Reguired 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.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Model X Model Z < Required 2 Required 4 > 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 Model Z < Required 3 Required 4 > Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Activity Usage 7,600 Activity Machining Budgeted Cost $ 311,000 22,000 $ 333,000 Activity Cost Driver Machine hours (MH) Process Assembly Setups Setups 60 Finishing Inspecting $ 234,000 Inspections 780 Support Purchasing $ 130,000 Purchase orders 480 Additional production information concerning its two models follows. Units and Activities Model X Model z Units produced Machine hours 1,600 2,200 3,200 5,400 Setups Inspections Purchase orders 20 40 520 260 320 160 Per Unit Model X Model Z $ 415 $ 395 Selling price per unit Direct materials cost per unit Direct labor cost per unit 160 115 145 135 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 pl. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Machining Setups Inspection Purchasing < Required 1 Required 2 > 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 X Activity Activity Usage Activity Rate Allocated Cost Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Model Z Activity Activity Usage Activity Rate Allocated Cost Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit < Required 1 Required 3 > Required 1 Required 2 Reguired 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.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Model X Model Z < Required 2 Required 4 > 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 Model Z < Required 3 Required 4 >
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1 ACTIVITY RATES ACTIVITY BUDGETED COST ALLOCATION BASE BUDGETED ACTIVITY USAGE ACTIVITY RATE Machin... View the full answer
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