Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
Bramble Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) 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 15 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 $1,582,128. Thus, the predetermined overhead rate is $16.43 or ($1,582,128 + 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 Use of Cost Drivers Estimated Overhead Cost Drivers Home Commercial Pounds 590.450 335.000 215.000 120.000 Activity Cost Pool Receiving Forming Assembling Testing 154.000 35,000 27.000 8,000 Machine hours Number of parts Number of tests 410.130 217,000 165.000 52.000 48.960 25.500 15.500 10,000 Painting Gallons 57,838 5.258 3.680 1.578 Packing and shipping Pounds 820.750 335.000 215.000 120,000 $1.582.129 Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, e.5. 12.25.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity Based Overhead Rate Receiving $ Pounds $ per pound Forming Machine hours $ per machine hour Assembling Parts $ per part Testing Tests $ per test Painting Gallons $ per gallon Packing and shipping Pounds $ $ Der pound $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Social Work Ethics Audit A Risk Management Tool

Authors: Frederic G. Reamer

1st Edition

0871013282, 978-0871013286

More Books

Students also viewed these Accounting questions