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-golion cylinder that holds 2 1/2 pounds of multi-purpose dry chemicals 400 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 96,100 or (1.5 hours (54,000 + 10,200) Estimated annual manufacturing overhead is $1,576,578. Thus, the predetermined overhead rate is $16.37 or (51,576,578 + 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 Activity Cost Poola Receiving Forming Assembling Testing Painting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $83,750 154,000 412,300 47,00 57,835 820,750 $1,576,578 Estimated Use of Drivers by Product Estimated Use of Cost Drivers Home Commercial 335,000 215,000 120,000 35,000 27,000 11,000 217,000 165,000 52,000 25,500 15,500 10,000 5,250 3,680 1.578 335,000 215,000 120,000 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 Total unit cost $ $ Under ABC, prepare a schedule showing the computations of the activity based overhead rates (per cost driver). (Round overhead rate to 2 decimal placesy. 12.25.) Activity Cost Pool Estimated Estimated Activity-Based Overhead Use of Cost Drivers Overhead Rate Receiving Pounds per pound 5 Machine hours per machine hour Forming Number of tests Gallons Pounds Painting Packing and shipping CALCULAT 47,940 57,838 820,750 $1,576,578 25,500 5,258 335,000 15,500 3,680 215,000 10,000 1,578 120,000 Under traditional product costing, compute the total unit cost of each product, (Round answers to 2 decimal places, c.9. 12.50) Home Model Commercial Model Total unit cost Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (por cost driver). (Round overhead rate to 2 decimal pla Estimated Activity Cost Pool Estimated Activity-Based Overhead Use of Cost Drivers Overhead Rate Receiving Pounds $ per pound Forming Machine hours per machine hour Assembling Parts $ per part Testing Tests per test s Painting Gallons per gallon Pacing and shipping Pounds per pound Da schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers (Round overhead cost per unit to 2 decimale Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round overhead cost per unit to 2 decimal plac cost assigned to 0 decimal places, e.g. 2,500.) Home Model Estimated Use of Activity-Based Drivers Overhead Rates Cost Assigned Commercial Model Estimated Use of Activity-Based Drivers Overhead Rates Cost Assigned Activity Cost Pool Receiving $ $ $ Forming $ $ Assembling $ $ Testing $ Painting $ Packing and shipping $ Total costs assigned (a) $ Units produced (b) Overhead cost per unit [(a) + (b)] Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, 0.9. 12.25.) Home Model Commercial Model Total cost per unit lurred activity Total costs assigned (a) Units produced (b) Overhead cost per unit [(a) + (b)] 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 $ 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 Work for this question Open Show Work Question Attempt
