ice cool produces two different models of air conditioners. the activities, costs, and cost drivers associated with the production processes follow. process activity budgeted cost activity cost driver budgeted activity usage assembly machining $ 310,200 machine hours (mh) 7,800 setups 24,000 setups 60 $ 334,200 finishing inspecting $ 226,000 inspections 760 support purchasing $ 136,000 purchase orders 450 additional production information concerning its two models follows. units and activities model x model z units produced 1,600 3,200 machine hours 2,400 5,400 setups 20 40 inspections 460 300 purchase orders 300 150 per unit model x model z selling price per unit $ 420 $ 400 direct materials cost per unit 150 105 direct labor cost per unit 125 130'