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Concord Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: ( 1 ) a home fire extinguisher and ( 2 )
Concord Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: a home fire extinguisher and commercial fire extinguisher. The home model is a highvolume units halfgallon cylinder that holds pounds of multipurpose dry chemical at PSI. The commercial model is a lowvolume units twogallon cylinder that holds pounds of multipurpose dry chemical at PSI. Both products require hours of direct labor for completion. Therefore, total annual direct labor hours are or hours Estimated annual manufacturing overhead is $ Thus, the predetermined overhead rate is $ or $ per direct labor hour. The direct materials cost per unit is $ the home model and $ for the commercial model. The direct labor cost is $ 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.
tabletableUse ofDrivers by ProductActivity Cost Pools,Cost Drivers,Estimated Overhead,tableEstimated Use ofCost DriversHome,CommercialReceivingPounds,$FormingMachine hours,AssemblingNumber of parts,TestingNumber of tests,PaintingGallons,Packing and shipping,Pounds,$Concord Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: a home fire extinguisher and commercial fire extinguisher. The home model is a highvolume units halfgallon cylinder that holds pounds of multipurpose dry chemical at PSI. The commercial model is a lowvolume units twogallon cylinder that holds pounds of multipurpose dry chemical at PSI. Both products require hours of direct labor for completion. Therefore, total annual direct labor hours are or hours Estimated annual manufacturing overhead is $ Thus, the predetermined overhead rate is $ or $ per direct labor hour. The direct materials cost per unit is $ the home model and $ for the commercial model. The direct labor cost is $ 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.
tabletableUse ofDrivers by ProductActivity Cost Pools,Cost Drivers,Estimated Overhead,tableEstimated Use ofCost DriversHome,CommercialReceivingPounds,$FormingMachine hours,AssemblingNumber of parts,TestingNumber of tests,PaintingGallons,Packing and shipping,Pounds,$TThhee aapp wwoonntt lleett mmee ppuubblliisshh mmuullttiippllee ppiiccttuurreess.. PPlleeaassee,, rreeffffeerr ttoo ssiimmiillaarr qquueettiioonnss oonn cchheegg ttoo aannsswweerr tthhee qquueessttiioonnss aa tthhrroouugghh ee TThhaannkkss aa lloott
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