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Ch17 Q11. Show work please thanks Comiat Fire Inc manufactures steel cylinders and nozzles for two models of fire extinguishers (1) a home fire extinguisher
Ch17 Q11. Show work please thanks Comiat Fire Inc manufactures steel cylinders and nozzles for two models of fire extinguishers (1) a home fire extinguisher and (2) commercialfire 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 multipurpose dry chemical at 390 PSL. Both products require 15 hours of direct labor for completion. Therefore, total annual direct labor hours are 96 300 or (15 hours *($4.000 - 10.2001). Estimated annual manufacturing overhead is $1,585,978. Thus the predetermined overhead rate is $16.46 or (51585.378 + 96300) per direct fabor 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 and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $87 100 155,050 407,960 49,980 57,838 827,450 $1.585 378 Estimated Use of Cost Drivers 335,000 35,000 217,000 25,500 5258 335.000 Home 215,000 27,000 165,000 15.500 3,680 215.000 Commercial 120.000 8000 52.000 10,000 1578 120.000 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 $ S Total unit cost
Ch17 Q11. Show work please thanks
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