Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and grossprofit LO P3Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the productionprocesses follow.ProcessAssemblyInspectionsPurchase orders.FinishingSupportAdditional production information concerning its two models follows.Units and ActivitiesUnits producedMachine hoursSetupsActivityMachiningSetupsInspectingPurchasingPer UnitSelling price per unitDirect materials cost per unitDirect labor cost per unitRequired 1Budgeted Cost$ 311,00022,000$ 333,000$ 232,000$ 134,000ActivityModel X2,0002,200MachiningSetupsInspectingPurchasing20520360Required 2Model Z4,0005,000Model X$ 41515514040300180Required 3Activity Cost DriverMachine hours (MH)Setups1. 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.Complete this question by entering your answers in the tabs below.InspectionsPurchase orders3. 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$ 395115150Required 4BudgetedActivityUsage7,20060Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.)Budgeted CostBudgeted Activity UsageActivity Rate< Required 1820540Required 2 >

Name: Exercise 17-17 (Algo) Using activity-based costing to allocate overhe
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and grossprofit LO P3Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the productionproc