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

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Combat Fire, Inc. manufactures steel cylinders and nones for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commerci fire extinguisher. The home model is a high-volume (54,000 units), half- on 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 PSL. 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 + 10,200)) Estimated annual manufacturing overhead is $1.583,096. Thus, the predetermined overhead race is $16.44 or (51.583,096 +96,300) per direct bor hour. The direct materiais cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor costs $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 Asembling Testing Painting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $80,400 145,950 414 40 55,080 Estimated Use of Cost Drivers 335,000 35,000 217.000 25,500 5,258 335,000 Home 215,000 27,000 165,000 15.500 3.680 215,000 Commercial 120,000 8,000 52.000 10.000 63,096 824,100 120,000 $1,583,096 Under traditional product costing, compute the total cost of each product. (Round answers to 2 decimal places, .g. 12.50.) Home Model Commercial Model Total unit costs Under ABC, prepare a schedule showing the computations of the activity based overhead rates (per cost driver). (Round overhead rate to decimal places, s. 12.25.) Activity Cost Pool Estimated m Overhead ates Estimated Use of Cost Drivers pounds Activity-Based Overhead Rate per pound Receiving Machine hours per machine hou Forming Parts per part Assembling Activity Cost Pool Overhead Rates Cost Assigned Commercial de Estimated Use of Activity Based Overhead Recen Forming Assembling Test Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per unit (a) (b) . 12.25.) Compute the total cost per unit for each product under ABC Round answer to 2 decimal places Home Model Commercial Model Total cost per units Classify each of the activities as a value-added activity or a non- v e-added activity Activity Receiving Forming Assembling 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 Click if you would like to show

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