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9 Question 1 of 4 > 15/25 Concord Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire
9 Question 1 of 4 > 15/25 Concord Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or (1.5 hours (54,000 + 10,200)). Estimated annual manufacturing overhead is $ 1.576,578. Thus, the predetermined overhead rate is $ 16.37 or ($ 1.576,578 +96,300) per direct labor hour. The direct materials cost per unit is $18,50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Use of Drivers by Product Estimated Overhead Cost Drivers Estimated Use of Cost Drivers 335,000 Home Activity Cost Pools Receiving Commercial Pounds $83,750 215,000 120,000 154.000 35,000 27,000 Forming 8,000 Machine hours Number of parts 412,300 217,000 165,000 52,000 Assembling 25,500 47.940 15,500 10,000 Testing Number of tests 5,258 57,838 3,680 1.578 Painting Gallons 335,000 215,000 120,000 Pounds 820.750 Packing and shipping $1,576,578 (d) * Your answer is incorrect. Compute the total cost per unit for each product under ABC. (Round answers to 2 decimal places, 6.8. 12.25.) Home Model Commercial Model Total cost per unit $ 62.06 $ 70.06 e Textbook and Media Assistance Used Attempts: unlimited Submit Answer Save for Later e) he parts of this question must be completed in order. This part will be available when you complete the part above
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