Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with theproduction processes follow.BudgetedBudgetedCostActivity Cost ActivityDriverProcessActivityUsageMachine hours(MH)Setups$AssemblyMachining7,800311,40020,000Setups120331,400FinishingInspectingInspections840226,000$134,000SupportPurchasingPurchase orders510Additional production information concerning its two models follows.Units andActivitiesUnits producedMachine hoursSetupsInspectionsModel X Model Z1,6002,200403,2005,60080500340340170Purchase ordersPer UnitModel X Model ZSelling price per unitDirect materials cost$ 410$ 390150115per unitDirect labor cost perunit1251501. 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 Required Required Required124Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2decimal places.)BudgetedCostActivityBudgeted Activity UsageActivity RateMachiningSetupsInspectingPurchasing Required Required Required Required134Using 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 XAllocatedActivityActivity UsageActivity RateCostMachiningSetupsInspectionPurchasingTotal allocatedcostUnits producedOverhead costper unit$Overhead cost per unit–Model ZAllocatedActivityActivity UsageActivity RateCostMachiningSetupsInspectionPurchasingTotal allocatedcost$Units producedOverhead costper unit

Name: Ice Cool produces two different models of air conditioners. The activ
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Description: Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with theproduction processes follow.BudgetedBudgetedCostActivity Cost ActivityDriverProcessActivityUsageMachine hours(MH)Setups$AssemblyMa

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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 Cost Budgeted Activity Cost Activity Usage Process Activity Driver Machine hours (MH) Setups 2$ Assembly Machining 7,800 311,400 20,000 Setups 120 331,400 Finishing Inspecting 2$ Inspections 840 226,000 $ 134,000 Support Purchasing Purchase orders 510 Additional production information concerning its two models follows.

Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Cost Budgeted Activity Cost Activity Usage Process Activity Driver Machine hours (MH) Setups 2$ Assembly Machining 7,800 311,400 20,000 Setups 120 331,400 Finishing Inspecting 2$ Inspections 840 226,000 $ 134,000 Support Purchasing Purchase orders 510 Additional production information concerning its two models follows.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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