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Combat 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

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Combat 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) at 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 [1.5 hours x(54,000+ 10.200)1. 16.45 or Expected annual manufacturing overhead is $1,584,500. Thus, the predetermined overhead rate is $ $1,584,500 96300) 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. ad by cost pool The company's managers identified six activity cost pools and related cost drivers and accumulated overhe as follows: Expected Use of Drivers by Product Expected Use of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial 120,000 8,000 52,000 $89,800 151,000 402,000 52,000 61,700 828,000 $1,584,500 35,000 215,000 35,000 27,000 217,000 165,000 25,500 15,500 ,258 3,680 335,000 215,000 Pounds Receiving Forming Assembling Testing Painting Packing and shipping Machine hours Number of parts Number of tests Gallons Pounds 10,000 1,578 120,000 Home Model Activity Expected Use of Drivers Activity-Based Overhead Rates Expecte Dri Cost Assigned Cost Pool Receiving Forming Assembling Testing Painting Packing and shipping Total costs assigned (a) Units produced Overheacd cost per unit [(a) + ead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.) Commercial Model Expected Use of Drivers Activity-Based Overhead Rates t Assigned Cost Assigned

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