CH 17

steel (2) a (54. half-gallon cylinder that holds 2 1/2 of dry at 480 PSL is a volume (10,200 units), two-g II c a ylinderthat 10 vmndsof at 390 PS. Both products IS hours Of direct labor completion, Therefore, total annual direct labor hours are 96,300 or [IS hours (54,0CC + 10,200}]. annual manufacturing 1,584.300. Thuy. the is S 16.45 ($ 1.584500 * 96.300) dlrect unit is $18.50 model $26.50 The direct labor cost is $19 unit for both the home the commercial models, identlfiedsix Cost Drivers Machine hours Number of parts Number Of tests Gallons nd by fallows: use of Activity Cost Pools Receiving Form ing mbl ing Testing Painting pack I ng and shipping (a) Your i s Estimated Overhead $ a9,aco 15 lgco 402 oco 52000 61,7co g2goco Expected Use of Cost Drivers 335,000 35 oco 217 oco 25.500 sasg 335,000 Home 215000 27,000 165000 15.500 3680 215000 Commercial 120,000 52,000 10.000 1,578 under traditional product costing, compute the total unit cost of each (Rwnd to 2 12.253 Horne Total unit cost eTextbOOk and Media Model 1 Under ABC. prepare a showing the computations Of the activity-based overhead rates (per COSt driver). rate to 2 12.250 Activity Cost Pml Form ling Paint i ng pwking and Overhead Use of Cost Drivers Pounds Machine hours Gallons pounds Activi ty-Based Overhead Rate per nd per machine hour per gallon per pou nd