Combat Fire, Inc, manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home hre 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 $1,574,008. Thus the predetermined overhead rate is $16.34 or ($1,574,008 + 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 poolas follows: Estimated Use of Drivers by Product 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 $87.100 149.100 412,300 46.920 57,838 820.750 $1.574,008 Estimated Use of Cost Drivers 335,000 35,000 217.000 25.500 5.258 335.000 Home 215,000 27.000 165,000 15,500 3,680 215,000 Commercial 120,000 8,000 52,000 10,000 1,578 120,000 Your answer is correct 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 6201 $ 70.01 e Textbook and Media Solution Attempts: 2 of 3 used 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.) ty bol Estimated Overhead Estimated Use of Cost Drivers 335,000 Activity-Based Overhead Rate 18 $ 87.100 Pounds $ 0.26 per pound per machine hour 149.100 35.000 Machine hours $ ins 412.000 217.000 Parts $ 1.90 per part 46.920 25,500 Tests per test 57,8.38 5.258 Gallons $ 11.00 per sallon 320.750 335.000 Pounds $ 245 per pound 5 1.574.000 0.4/1 Question 10 of 10 11 Activity Cost Pool Estimated Use of Drivers Activity-Based Overhead Rates Estima DI Cost Assigned Receiving $ Forming $ $ Assembling Testing $ 5 $ $ Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per unit(a) (b)