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)]. Expected annual manufacturing overhead is $1,580,700. Thus, the predetermined overhead rate is $16.41 or ($1,580,700 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:

Expected Use of Drivers by Product Expected Use of Cost Drivers Cost Drivers Activity Cost Pools Estimated Overhead Home Commercial Pounds $81,600 335,000 215,000 120,000 Receiving Forming Machine hours 151,000 35,000 27,000 8,000 Number of parts Assembling 415,000 217,000 165,000 52,000 Testing Number of tests 52,000 25,500 15,500 10,000 Painting Gallons 3,680 53,100 5,258 1,578 Packing and shipping Pounds 828,000 335,000 215,000 120,000 $1,580,700 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total unit cost LINK TO TEXT VIDEO: SIMILAR PROBLEM 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.) Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate Activity Cost Pool Pounds Receiving per pound Machine hours Forming per machine hour S Assembling Parts per part S Testing Tests per test S Painting Gallons per gallon Packing and shipping Pounds per pound Prepare a schedule assigning cach activity's overhead cost pool to cach product based 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. 2,50o.) Commercial Model Expected Use of Activity-Based Home Model Expected Use of Activity-Based Activity Cost Pool Overhead Rates Cost Assigned Overhead Rates Cost Assigned Drivers Drivers Receiving Forming Assembling Testing Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per unit [(a) + (b)] LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM 2 decimal places, e.g. 12.25.) reach product under ABC. (Round answer Campute the total cost per unit Commercial Model Home Model Total cost per unit LINK TO T LINK TO TEXT LINK TO TEXT VIDEOL STMTLAR PROBLEM r a non-value-added activity Classify cach of the activities as valun-added activity Activity Receiving Forming Assembling Testing Painting Packing and shipping