Combat Fire, incmanufactures 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 $1.569.238. Thus, the predetermined overhead rate is $16.30 or ($1.569.238 = 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. Estimated Use of Drivers by Product Home Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $83.750 155,050 403.620 44.880 57,838 824 100 S152 Estimated Use of Cost Drivers 335,000 35.000 217.000 25.500 5.258 335,000 215,000 27.000 165.000 15.500 3.680 215,000 Commercial 120,000 8,000 52.000 10,000 1,578 120,000 et comme Tonico VIO 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.) Under ABC, prepare a schedule showing the computations of the actie based over and rates per conut ater. (found overtad rate to 2 decimal aces, 09.12.28.) Activity Cost Pool Expected Overhead Use of Cost Drivers Overhead Rate und Farming Machine mur Asembling per part Testing Paint Gatos Pading and Pounds pound ut 0 II Prepare a schedule antiprina rachat everhent cost pool to each product based on the assigned to decimals 2.500 talverstoond overtad construit 2 decimal placeres 12.25 and cont AVRO EUGE Drivers Home Mode ACOH Case Overhead Rates Cost Aused Comme del Alvity-Based Overhead Rates Cost Ansigned Drivers Farming Ambling To Pading and hing Total ied produced Overhead cott A) LINKIT LINKIT LINE TOX Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, eg. 12.25.) Commercial Model Total cost per unit Home Model
