Combat Fire, Ing 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) hallegation cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSL. 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 x (54.000 + 10.200)). Estimated annual manufacturing overhead is $ 1.561,090. Thus, the predetermined overhead rate is $16.21 or ($1.561.090 - 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 Commercial Estimated Overhead $83.750 215,000 Estimated Use of Cost Drivers 335,000 35,000 Activity Cost Pools Receiving Forming Assembling Testing 120,000 Cost Drivers Pounds Machine hours Number of parts Number of tests 149.100 27.000 8,000 52,000 403,620 217,000 165,000 47,940 25,500 15.500 10.000 Painting Gallons 52.580 5,258 3,680 1.578 Packing and shipping Pounds 824,100 335.000 215,000 120.000 $ 1.561.090 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, s. 12.50) Home Model Commercial Model Total unit cost $ eTextbook and Media Question Part Score --/1 Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, s. 12.25) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving $ Pounds per pound per Forming Machine hours machi hour Under ABC, prepare a schedule showing the computations of the activity based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, eg. 12.25.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving $ Pounds $ per pound Machine hours $ Forming per machi hour Assembling Parts $ per part Tests $ Testing per te Gallons $ per rallor Painting 1 Packing and shipping Pounds $ per pound $ Prepare a schedule assigning each activity's 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 decimal places, eg. 2,500) Home Model Activity Estimated Use of Activity-Based Cost Pool Drivers Overhead Rates Cost Assigned Drivers Receiving Estimated $ Forming Assembling $ Testing $ Painting Packing and Shipping S Total costs assigned() Units produced Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round overhead cost per unit to 2 decimal places, eg. 12.25 and cost assigned to decimal places, eg 2,500) Estimated Use of Drivers Commercial Model Activity-Based Overhead Rates Cost Assigned Cost Assigned $ $ $ $ Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, es. 1225.) Home Model Commercial Model Total cost per unit $ eTextbook and Media Question Part Score --/1 Classify each of the activities as a value-added activity or a non-value-added activity. Activity Receiving Forming Assembling
