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 $ 310,800 28,000 $ 338,800 $ 226,000 $ 134,000 Activity Cost Driver Machine hours (MH) Setups Inspections Purchase orders Budgeted Activity Usage 7,400 120 820 540

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Inspections
Purchase orders
Activity
Machining
Setups
Units and Activities
Units produced
Machine hours
Setups
Inspecting
Purchasing
Additional production information concerning its two models follows.
Model Z
4,400
5,400
Per Unit
Selling price per unit
Direct materials cost per unit
Direct labor cost per unit
Budgeted Cost
$ 310,800
28,000
$ 338,800
$ 226,000
$ 134,000
Activity
Model X
2,200
2,000
Machining
Setups
Inspecting
Purchasing
40
500
360
Model X
$ 405
160
130
Activity Cost Driver
Machine hours (MH)
Setups
80
320
180
Inspections
Purchase orders
Model Z
$385
110
120
Complete this question by entering your answers in the tabs below.
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).
Budgeted
Activity
Usage
7,400
120
820
540
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
Transcribed Image Text: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 Inspections Purchase orders Activity Machining Setups Units and Activities Units produced Machine hours Setups Inspecting Purchasing Additional production information concerning its two models follows. Model Z 4,400 5,400 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Budgeted Cost $ 310,800 28,000 $ 338,800 $ 226,000 $ 134,000 Activity Model X 2,200 2,000 Machining Setups Inspecting Purchasing 40 500 360 Model X $ 405 160 130 Activity Cost Driver Machine hours (MH) Setups 80 320 180 Inspections Purchase orders Model Z $385 110 120 Complete this question by entering your answers in the tabs below. 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). Budgeted Activity Usage 7,400 120 820 540 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
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