Attempt History Current Attempt in Progress Pharoah 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(15 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 Estimated Use of Drivers by Product Activity Cost Pools Receiving Forming Assembling Testing Painting Packing rid shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Estimated Overhead $83.750 154,000 412,300 47.940 57,838 Estimated Use of Cost Drivers 335,000 35,000 217.000 25,500 5,258 Home 215,000 27,000 165,000 15,500 3,680 Commercial 120,000 8,000 52,000 10,000 1,578 Pounds 820,750 335,000 215.000 120,000 $1.576,578 (a) Your answer is correct. Under traditional product casting compute the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product. (Round answers to 2 decimal places, eg. 1225.) Products Home Model Commercial Model 18.50 $ 26.50 Manufacturing Costs Direct materials Direct labor Overhead 19.00 19.00 24.56 24.56 Total unit cost 6206 $ 70.06 e Textbook and Media Attempts: 2 of 5 used (b) Your Answer Correct Answer (Used) Your answer is partially correct. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places es. 12.25.) Activity Estimated Estimated Activity-Based Cost Pool Overhead Use of Cost Drivers Overhead Rate Receiving 83750 Pounds 335000 $ 0.25 pe po Forming 154000 35000 Machine hours $ pe mi ho Assembling 412300 217000 Parts $ 1.9 pa Testing 47940 25500 Tests $ L68 Painting 57838 5285 Gallons $ 10.94 Packing and shipping 820750 335000 Pounds $ 2.45 pe po $ 1576578 (c) Your answer is correct Drk 215000 $ 0.25 53750 27000 $ 44 118300 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 O decimal places, eg 2,500) Home Model Activity Estimated Use of Activity-Based Estimate Cost Pool Drivers Overhead Rates Cost Assigned Receiving Forming Assembling Testing Painting Packing and shipping Total 1082420 assigned 16500 $ 1.9 313500 15500 $ 1.88 29140 3680 $ 11 40480 215000 $ 2.45 526750 costs $ 54000 Units produced Overhead cost per unit 2004 (c) Your answer is correct. 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 Odecimal places, s.2.500.) Commercial Model Estimated Use of Cost Assigned Drivers Overhead Rates Cost Assigned Activity-Based 53750 120000 $ 0.25 $ 30000 118800 8000 $ 44 35200 313500 52000 $ 19 98300 29140 10000 $ 188 TODO 10480 1578 $ 11 17358 526750 120000 $ 245 294000 1002420 494158 54000 10200 20.04 46.45 (d) Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, eg. 12.25.) Commercial Model Home Model Total cost per unit $ Save for Later Attempts:0 of 5 used Submit
