Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 15 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 518.50 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 Estimated Use of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial Pounds Receiving $87,100 335.000 215,000 120,000 35,000 149.100 Machine hours 27.000 8,000 Forming 412.300 217,000 165,000 52.000 Assembling Number of parts 46,920 25,500 15,500 10,000 Number of tests Testing 57,838 5.258 3,680 Painting Gallons 335.000 215,000 820,750 120.000 Packing and shipping Pounds $1.574,008 1.578 3 O Your Answer Correct Answer 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 $ 62.01 $ 70.01 e Textbook and Media Solution Attempts: 2 of 3 used 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 Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving Pounds Forming Machine hours GA Assembling Parts $ Testing Tests $ Painting Gallons $ Packing and shipping Pounds $ Save for Later Attempts: 0 of 3 used Submit Answer Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, e.g. 12.25.) ty Estimated Estimated Activity-Based ool Overhead Use of Cost Drivers Overhead Rate ag Pounds per pound per Machine $ machine 3 hours hour $ $ $ ding Parts $ per part Tests $ per test Gallons $ per gallon Pounds per pound $ VA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Non Accounting Students

Authors: John Dyson, Ellie Franklin

10th Edition

1292286938, 9781292286938

More Books

Students also viewed these Accounting questions

Question

Define indirect financial compensation (employee benefits).

Answered: 1 week ago