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answer all parts please show work Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher
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Combat 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 $1,542.790. Thus, the predetermined overhead rate is $16.02 or ($1,542,790 +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 Estimated Use of Drivers by Product Estimated Use Estimated of Activity Cost Pools Cost Drivers Overhead Cost Drivers Home Commercial Receiving Pounds $80,400 335,000 215.000 120,000 Forming Machine hours 144,900 35,000 27,000 8,000 Number of Assembling 399.280 217.000 165,000 52.000 parts Number of 44,880 Testing 25,500 15,500 10.000 Painting Gallons 52,580 5.258 3,680 1.578 Packing and Pounds 820,750 335,000 215,000 120.000 shipping $1.542,790 tests (a) Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, s. 12.50.) Home Model Commercial Model Total unit cost under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places 12.25.) Estimated Activity Cost Pool Expected Activity-Based Overhead Use of Cost Drivers Overhead Rate Receiving Pounds per pound B Forming Machine hours per machine hour Assembling Parts per part Testing Tests per test Painting Gallons per gallon Packing and shipping Pounds per pound Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round overhead cost per unit to 2 decimal places, ... 12.25 and cost assigned to o decimal place ... 2,500.) Home Model Commercial Model Activity Cost Pool Expected Use of Activity-based cont Assigned Expected Use of Activity Based Drivers Overhead Rates Cost Assigned Drivers Overhead Rates Receiving Forming Assembling oddiddi esting Painting Paclong and shipping Tot costs word (6) Units produced ) Overhead cont per un to Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places es. 12.25.) Home Model Commercial Model Total cost per unit Step by Step Solution
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