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ASAP Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire

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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 10,2001). Estimated annual manufacturing overhead is $1.542.790. Thus, the predetermined overhead rate is $16.02 or (S1,542.79096,300) 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 of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial Receiving Pounds $80,400 335.000 215.000 120.000 Forming Machine hours 144.900 35,000 27000 8.000 Assembling Number of parts 399,280 217,000 165.000 52.000 Testing Number of tests 44,880 25,500 15,500 10,000 Painting Gallons 52580 5.258 3.680 1,578 Packing and shipping Pounds 820.750 335,000 215,000 120.000 $1,542,790 Under traditional product costing compute the total unit cost of each product. (Round answers to 2 decimal places, eg. 12.50) Home Model Commercial Model Total unit cost $ $ e Textbook and Media Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rote to 2 decimal places, s. 1225) Activity Estimated Estimated Activity-Based Cost Pool Overhead Use of Cost Drivers Overhead Rate Receiving $ Pounds Forming Machine hours $ Assembling Parts $ Testing Tests $ Painting Gallons $ Packing and shipping Pounds $ e Textbook and Media 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 $ eTextbook and Media Classify each of the activities as a value-added activity or a non-value-added activity. Activity Receiving Forming Assembling Testing Painting Packing and shipping e Textbook and Media Estir 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, es 12.25 and cost assigned to decimal places, 48.2,500) Home Model Activity Estimated Use of Activity-Based Drivers Overhead Rates Cost Assigned Receiving Forming Assembling Cost Pool $ $ $ $ Testing $ I $ $ Painting Packing and shipping Total costs assigned (a) Units produced Overhead cost per unit((a) + (b)] e Textbook and Media 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, es 12.25 and cost assigned to decimal places, es 2,500) Commercial Model Estimated Use of Activity-Based Cost Assigned Drivers Overhead Rates Cost Assigned $ $ $ $ $ e Textbook and Media

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