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)]. 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.

Totalnost eTextbook and Media Solution Part 2 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, eg. 12.25.) Estimated Overhead Estimated Activity Cost Pool Activity-Based Overhead Rate Use of Cost Drivers Receiving S0400 335000 Pounds 24 per pound Forming 150500 35000 Machine hours $ 420 Assembling 412300 212000 Parts Testing 51000 25500 Tests 190 200 10.00 250 per machine hour per part per test per pallon per pound Painting 5258 Gallons Pacing and shipping 52500 837500 1584200 335000 Pounds $ cTextbook and Media Part 3 Your Answer Correct Answer Your answer is correct. Prepare a schedule assigning each activity's overhead cast poolt each product based on the use of cost drivers. Round overhead cost per unit to 2 decimal places, eg. 12.25 and cost assigned to decimal places, eg. 2,500.) Home Model Commercial Model Activity Cost Pool Estimated Use of Drivers Activity-Based Overhead Rates Cost Assigned Estimated Use of Drivers Activity-Based Overhead Rates Cost Assigned Receiving 215000 $ 51600 120000 20000 Forming 27000 $ 116100 1400 Assembling 145000 $ 313500 98200 Testing $ 10000 20000 Painting 15500 360 215000 DO 157 15780 Packing and shipping $ 537500 120000 $ 300000 Total costs assigned (a) 106600 497780 Units produced lb) 54000 10000 Overhead cost per unit (a) (bil 20.12 40.00 cTextbook and Media Solution Part 4 Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, e... 12.25.) Home Model Commercial Model Total cost per unit $