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

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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. Process Assembly Finishing Support Activity Machining Setups Inspecting Purchasing Budgeted Cost $ 311,600 22,000 $333,600 $ 226,000 $ 134,000 Inspections Purchase orders. Additional production information concerning its two models follows. Units and Activities. Model X Units produced Machine hours Setups 1,800 2,200 40 460 360 Model 2 3,600 5,000 80 300 180 Activity Cost Driver Machine hours (MH) Setups Model X $410 155 140 Inspections Purchase orders. Model z $ 390 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit 1 Compute the activity rate for each activity usinn activity.hacer costinn 105 155 Budgeted Activity Usage 7,200 120 760 540 Machine hours Setups Inspections Purchase orders Per Unit Selling price per unit Direct materials cost per unit. Direct labor cost per unit Required 1 MAN 2,200 40 460 360 Activity Required 2 Machining Setups Inspecting Purchasing 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. 5,000 80 300 180 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. Model X $ 410 Required 3 155 140 Model z $ 390 105 155 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Budgeted Cost Budgeted Activity Usage Activity Rate 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 Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Overhead cost per unit-Model Z Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Usage Activity Rate Activity Rate Allocated Cost Allocated Cost Units produced Machine hours Setups Inspections Purchase orders 1,800 2,200 Per Unit Selling price per unit Direct materials cost per unit. Direct labor cost per unit 40 460 360 3,600 5,000 Per Unit Model X $410 Model X Model Z 155 140 80 300 180 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. Model Z $ 390 105 155 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 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.) Direct Materials Direct Labor Product Cost per Unit Overhead units producea Machine hours. Setups Inspections Purchase orders Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit 1, BUU 2,200 40 460 360 3, DUU 5,000 Per Unit Model X $ 410 Model X Model Z 155 140 80 300 180 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). Model Z $ 390 105 155 Complete this question by entering your answers in the tabs below. 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.) Selling Price Product cost per unit Gross Profit

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## Requirement 1 Activity Budgeted Cost Budgeted activity Usage Activity Rate A B C A B Machining 311 6 View the full answer

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