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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 comTercial fire extinguisher. The
Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1)a home fire extinguisher and (2) a comTercial fire extinguisher. The hame model is a high-valume (54,000 unitsl, half-gallon cylinder that halds 2 1/2 pounds af 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 hoursx (54,000+ 10,200, Expected annual manufacturing overhoad is $1,584,600. Thus, the prodctermined overhcad rate is $16.45 or ($1,584,60096,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home madeland $26.50 for the commercial model. The direct labor cost is $19 per unit for bath the home and the commercial madels The company's managers identifieds activity cost pools and related cst drivers and accumulated overhead by cost pool as follows: Use Epected Dri . Actlvity Cost Pools Estimated Overhead Cost Drivers Home Commercial $89,200 335,000 215,000 120,000 Receiving Pounds Forming Machine hours 154,000 35,000 27,000 8,000 Number of parts Assembling 410,000 217,000 165,000 52.000 Number of tests Testing 49,000 25.500 15,500 10.000 Painting Gallons 60,400 3,680 1578 5 25F Pounds 335,000 215.000 120,000 Packing and shippirng 822,000 $1,584,600 (a) Under traditional product costing, compute the total unit cost of cach product. (Round answers to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total unit cost S
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