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-gation 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)]. 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: Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $86,200 155,000 413,000 47.000 60,800 823,000 $1.585.000 Expected Use of Cost Drivers 335,000 35,000 217,000 25,500 5,258 335.000 Expected Use of Drivers by Product Home Commercial 215,000 120,000 27,000 8.000 165,000 52,000 15,500 10,000 3,680 1,578 215,000 120,000 Activity Cost Pool Expected Use of Drivers Home Model Activity-Based Overhead Rates Cost Assigned Expected Driv Receiving $ $ Forming $ Assembling Testing $ $ Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per unit(a) (b)] Your answer is correct. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, es. 12.25.) Activity-Based Overhead Rate Estimated Overhead Expected Use of Cost Drivers Activity Cost Pool Receiving $ 0.26 per pou Pounds 335000 86200 $ 4.43 Machine hours per mac hou 35000 155000 Forming 1.90 per par 217000 Parts 413000 Assembling $ 1 84 per Tests 47000 25500 Testing per $ 11.56 5258 Gallons gall 60800 Painting $ 2.46 per pou Pounds 335000 823000 Packing and shipping 1585000