Activity Cost Pools Question 2 of 3 Pharoah 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 (50,000 units), half-litre cylinder that holds 2.50 kilograms of multi- purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (9,804 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 1.25 hours of direct labour for completion. Therefore, total annual direct labour hours are 74,755 or [1.25 hrs. x (50,000+ 9,804)]. Estimated annual manufacturing overhead is $1,495,100. Thus, the predetermined overhead rate is $20.00 or ($1,495,100+ 74,755) per direct labour hour. The direct materials cost per unit is $18.86 for the home model and $26.76 for the commercial model. The direct labour cost is $18.00 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Receiving Forming Assembling Testing Painting Packing and shipping Cost Drivers Kilograms Machine hours Number of parts Number of tests Litres Kilograms Estimated Overhead $67,600 150,500 394,200 52,000 53,400 777,400 $1,495,100 Estimated Use of Cost Drivers 338,000 35,000 219,000 26,000 6,000 338,000 Use of Drivers by Product Home 216,000 27,000 167,000 16,000 4,000 216,000 Commercial 122,000 8,000 52,000 10,000 2,000 -/5 122,000 ; MAN

Pharoantinc manufactures steelcylinders and nonles for two models of fire extinguishers: (1) a home fire extingusher and (2) a commercial fire extinguisher. The home model is a high-volume ( 50.000 units) half-litre cylinder that holds 2.50 kilograms of mult:purpose dry chemical at 480 P5I (pounds per square inch). The commercial model is a low-volume (9,804 units), two-litre cylinder that holds 10 kilograms of multi-purposedry chemical at 390 P5i. Both products require 1.25 hours of direct labour for completion. Therefore, total annual direct labour hours are 74,755 or [1.25 hrs. (50,000+9,804)]. Estimated annual manufacturing overhead is $1,495,100. Thus, the predetermined overhead rate is $20,00 or ($1,495,100+74,755) per direct labour hour. The direct materials cost per unit is $18.86 for the home model and $26.76 for the commercial model. The direct labour cost is $18.00 per unit for both the home and commercial models. The company's managers identifed six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: (a) Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product. (Round anawers to 2 decimal ploces, es 15.25 )