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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.

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 $1,569,040. Thus, the predetermined overhead rate is $16.29 or ($1,569,040 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 companys managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.

Estimated Use of Drivers by Product

Activity Cost Pools

Cost Drivers

Estimated Overhead

Estimated Use of Cost Drivers

Home

Commercial

Receiving Pounds

$87,100

335,000

215,000

120,000

Forming Machine hours

148,050

35,000

27,000

8,000

Assembling Number of parts

407,960

217,000

165,000

52,000

Testing Number of tests

45,900

25,500

15,500

10,000

Painting Gallons

52,580

5,258

3,680

1,578

Packing and shipping Pounds

827,450

335,000

215,000

120,000

$1,569,040

Prepare a schedule assigning each activitys 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.)

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

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 0 decimal places

Forming

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

Assembling

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

Testing

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

Painting

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

Packing and shipping

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places

enter a number of cost drivers used per activity

$enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 0 decimal places
Total costs assigned (a)

$enter a total amount

$enter a total amount

Units produced (b) enter a number of units produced enter a number of units produced
Overhead cost per unit [(a) (b)]

$enter a dollar amount rounded to 2 decimal places

Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, e.g. 12.25.)

Home Model

Commercial Model

Total cost per unit

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

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