Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of re extinguishers: (1) a home re extinguisher and (2) a commercial re 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 identied six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Use of Drivers by Product Estimated Use Estimated of Activity Cost Pools Cost Drivers Overhead 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 5 1,000 25,500 15,500 10,000 Painting Gallons 52,580 5,258 3,680 1,578 Packing and shipping Pounds 837,500 335,000 215,000 120,000 $1,584,280 Home Model Activity Use of Drivers Activity-Based Use of [ Cost Pool by Product Overhead Rates Cost Assigned by Pro Receiving 215000 $ 0.26 55,900 Forming 27000 4.40 1,18,800 Assembling 165000 $ 1.88 3,10,200 Testing 15500 1.76 27,280 Painting 3680 12.00 44,160 Packing and 215000 $ 2.46 528900 shipping Total costs to 10085240 assigned (a) Units produced 54000 (b) Overhead cost per to 20.10 unit [(a) : (b)]Commercial Model Use of Drivers Activity-Based Cost Assigned by Product Overhead Rates Cost Assigned $ 55,900 120000 $ H 0.26 31,200 I 1,18,800 8000 $ | 4.40 35,200 I 3,10,200 5 2000 $ 1.88 97,760 27,280 100000 $ 1.76 17,600 44,160 1578 $ 12.00 18,936 528 900 1 20000 $ 2.46 295200 $ 10085240 495896 54000 10200 $ 20.10 48.62