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 x (54.000 + 10,200)). Estimated annual manufacturing overhead is $ 1,588,566. Thus, the predetermined overhead rate is $ 16.50 or ($ 1,588,566 = 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. Estimated Use of Drivers by Product Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Home Commercial Pounds $ 87,100 335,000 215.000 120,000 155,050 35,000 27,000 8,000 Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping 412,300 217,000 165,000 52,000 Machine hours Number of parts Number of tests Gallons Pounds 46,920 25,500 15,500 10,000 63,096 5.258 3.680 1,578 824,100 335,000 215,000 120,000 $1,588,566 Your answer is incorrect. 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 $ 62.25 $ 70.25 e Textbook and Media Your answer is partially 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.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving $ 87100 335000 Pounds $ 0.26 Forming 157500 35000 Machine hours $ 4.50 Assembling 390600 217000 Parts $ 1.80 Testing 61200 25500 Tests $ 2.40 Painting 36806 5258 Gallons $ 7.00 Packing and shipping 837500 335000 Pounds $ 2.50 TA 1570706 e Textbook and Media Prepare a schedule assigning each activity's overhead cost pool to 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, e.g. 2,500.) Home Model Est Activity Cost Pool Estimated Use of Drivers Activity-Based Overhead Rates Cost Assigned Receiving 55900 $ $ 87100 Forming $ Assembling $ Testing $ Painting 1A1A Packing and shipping Total costs assigned (a) $ 10000 Units produced (b) Overhead cost per unit (a) (b)] e Textbook and Media Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.) Estimated Use of Drivers Commercial Model Activity-Based Overhead Rates Cost Assigned Cost Assigned 87100 UA UA $ $ TOT $ $ 1000000 $ $ e Textbook and Media