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. Thehome modelis a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. Thecommercial modelis 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 (54,000 + 10,200)]. Estimated annual manufacturing overhead is $1,570,138. Thus, the predetermined overhead rate is $16.30or ($1,570,138 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.

Estimated Use of

Drivers by Product

Activity Cost Pools

Cost Drivers

Estimated Overhead

Estimated Use of

Cost Drivers

Home

Commercial

ReceivingPounds$83,750

335,000

215,000

120,000

FormingMachine hours150,850

35,000

27,000

8,000

AssemblingNumber of parts403,620

217,000

165,000

52,000

TestingNumber of tests49,980

25,500

15,500

10,000

PaintingGallons57,838

5,258

3,680

1,578

Packing and shippingPounds824,100

335,000

215,000

120,000

$1,57

View Policies Show Attempt History Current Attempt in Progress 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 $1,570,138. Thus, the predetermined overhead rate is $16.30 or ($1,570,138 + 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. Estimated Use of Drivers by Product Estimated Use of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial Receiving Pounds $83,750 335,000 215,000 120,000 Forming Machine hours 150,850 35,000 27,000 8,000 Assembling Number of parts 403,620 217,000 165,000 52,000 Testing Number of tests 49,980 25,500 15,500 10,000 Painting Gallons 57,838 5,258 3,680 1,578 Packing and shipping Pounds 824,100 335,000 215,000 120,000 $1,570,138Your answer is incorrect. Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.50.) Home Model Commercial Model Total unit cost $ eTextbook and Media * Your answer is incorrect. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, e.g. 12.25.) Activity Estimated Estimated Activity-Based Cost Pool Overhead Use of Cost Drivers Overhead Rate pel Receiving $ Pounds 69 pol pel Machine Forming ma hours how pel Assembling Parts par Testing Tests pel pe Painting Gallons $X Your answer is incorrect. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, e.g. 12.25.) Activity Estimated Estimated Activity-Based Cost Pool Overhead Use of Cost Drivers Overhead Rate pel Receiving Pounds pol pel Machine Forming ma hours how pel Assembling Parts par Testing Tests pel per Painting Gallons gal Packing per and Pounds pol shipping eTextbook and MediaHome Model Activity Estimated Use of Activity-Based Estimated Cost Pool Drivers Overhead Rates Cost Assigned Drive Receiving $ Forming $ Assembling Testing Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per $ unit [(a) : (b)]X Your answer is incorrect. Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total cost per unit $ $ eTextbook and Media