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 $ 1,565,500. Thus, the predetermined overhead rate is $ 16.26 or ($ 1,565,500+ 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. cal Estimated Use of Drivers by Product Estimated Use of Cost Drivers Activity Cost Pools Cost Drivers Estimated Overhead Commercial Home 215,000 Receiving Pounds $ 87,100 335,000 Machine hours Forming 144.900 35,000 27,000 120,000 8,000 52,000 Number of parts 401.450 217,000 Assembling 165.000 Testing 52,020 15,500 Number of tests 25,500 10,000 5,258 52,580 3,680 1,578 Gallons Painting Packing and shipping 827,450 335,000 215,000 120.000 Pounds $ 1,565,500 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decir 12.50.) Home Model Commercial Model $ $ Total unit cost -- Under ABC, prepare a schedule showing the computations or the activity-based overhead rates per cost drivers. Thound overhead rate to 2 decimal places, e.g. 12.25.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving $ Pounds $ per pour Forming Machine hours $ per macl hour Assembling Parts $ per part Testing Tests $ per Painting Gallons $ per gallc Packing and shipping Pounds $ per pour $ Activity Cost Pool Estimated Use of Drivers Home Model Activity-Based Overhead Rates Estimated Drive Cost Assigned Receiving $ $ Forming $ Assembling $ Testing $ $ Painting $ Packing and shipping $ Total costs assigned (a) Units produced (b) Overhead cost per unit [(a): (b)] $ Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal p Home Model Commercial Model Total cost per unit $ $ e Taythook and Media Classify each of the activities as a value-added activity or a non-value-added activity. Activity Receiving Forming + Assembling Testing Painting Packing and shipping eTextbook and Media
