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es processes follow. Process Assembly Finishing Support Activity Machining Setups Inspections Purchase orders Inspecting Purchasing Units and Activities Units produced Machine hours Setups Budgeted Cost $ 279,000 24,000 $ 303,000 $ 210,000 $ 135,000 Additional production information concerning its two models follows. Model X 1,724 1,800 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit 40 400 300 Model Z 3,463 4,200 Model X $ 420 100 150 Activity Cost Driver Machine hours (MH) Setups 80 300 150 Inspections Purchase orders Model Z $ 400 90 160 Budgeted Activity Usage 6,000 120 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. Prev 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). 700 450 6 of 8 www Next >

processes follow. Additional production information concerning its two models follows. 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)

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