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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.

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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), 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). Expected annual manufacturing overhead is $1.585,000. Thus, the predetermined overhead rate is $16.46 or ($1,585,000 + 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: Expected Use of Drivers by Product Expected Use of Activity Cost Pools Cost Drivers Estimated Overhead Commercial Receiving $86,200 335.000 Forming Machine hours 155.000 35,000 27.000 Assembling Number of parts 165.000 52,000 Testing Number of tests Gallons Painting 1.578 Packing and shipping Pounds 215.000 Cost Drivers Home Pounds 215.000 120,000 8,000 413.000 15,500 10,000 217,000 25,500 5.258 335,000 47,000 60.800 823,000 $1.585.000 3,680 120,000 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.) Activity Cost Pool Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate Receiving Pounds per pou Forming Machine hours per mat hou Assembling Parts per Testing par Tests per Painting Gallons $ per Rall Packing and shipping Pounds $ per pou $

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