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), two-gallon cylinder that 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)]. Estimated annual manufacturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16.45 or ($1,584,280 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 Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Home Commercial Receiving Pounds $80,400 335,000 215,000 120,000 Forming Machine hours 150,500 35,000 27,000 8,000 Assembling Number of parts 412,300 217,000 165,000 52,000 Testing Number of tests 51,000 25,500 15.500 10,000 Painting Gallons 52,580 5,258 3.680 1578 Packing and shipping Pounds 837,500 335,000 215,000 120,000 $1.584,280 (b) Your partly Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, eg. 12.25) vity Pool Estimated Overhead ving $ Estimated Use of Cost Drivers Activity-Based Overhead Rate per 87100 335000 Pounds $ 026 pound per ng Machine 157500 35000 hours 4.50 machine hour per bleng 290600 217000 Parts 100 part 61200 25500 Tests 2.40 per test ng 36806 5258 Gallons per 700 gallon per 037500 335000 Pounds $ 250 pound ng 1570706 Activity Cost Pool Use of Drivers by Product Home Model Receiving Forming Assembling $ Testing Painting $ Packing and $ shipping Total costs assigned (a) Units produced (b) Activity-Based Use of Dr Overhead Rates Cost Assigned by Prod Overhead cost per unit [(a)+ (b)1 $ (d) Compute the total cost per unit for each product under ABC. (Round answers to 2 decimal places, eg. 12.25) Home Model Commercial Model Total cost per unit. $ $ (e) 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. v A