Crane 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 $21/2$ pounds of multipurpose 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 $1\mathrm{.}5$ hours of direct labor for completion. Therefore, total annual direct labor hours are $96,300$ or $[1\mathrm{.}5$ hours x $(54,000+10,200)].$ Estimated annual manufacturing overhead is $$1,577,308.$ Thus, the predetermined overhead rate is $$16\mathrm{.}38$ or $($$$1,577,308+96\mathrm{.}300)$ per direct labor hour. The direct materials cost per unit is $$18\mathrm{.}50$ for the home model and $$26\mathrm{.}50$ for the commercial model. The direct labor cost is $$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.

Use of

Drivers by Product

Activity Cost Pools

Cost Drivers

Estimated Overhead

Estimated Use of

Receiving

Pounds

$$83,750$

Cost Drivers

$335\mathrm{.}000$

Home

$215\mathrm{.}000$

Commercial

$120,000$

Forming

Machine hours

$152,950$

Assembling

Number of parts

$407,960$

$35\mathrm{.}000$

$217,000$

$27,000$

$165\mathrm{.}000$

$8,000$

Testing

Painting

Number of tests

Gallons

$54,060$

$25,500$

$15,500$

$52\mathrm{.}000$

$10,000$

$57,838$

$5,258$

$3,680$

$1,578$

Packing and shipping

Pounds

$820,750$

$335,000$

$215,000$

$$1,577,308$

$120,000$

Under traditional product costing, compute the total unit cost of each product. $($Round answers to $2$ decimal places, e$.$g$.12\mathrm{.}50.)$

Home Model

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$.1,2\mathrm{.}25$ and cost assigned to $0$ decimal places, e$.$g$.2,500.)$

Activity

Cost Pool

Receiving

Use of Drivers by Product

Home Model

Activity$-$Based

Overhead Rates

Cost Assigned

Use ol by P

Forming

Assembling

Testing

Painting

Packing and shipping

Total

COStS

assigned $($a$)$

Units produced

$($b$)$

Overhead cost per unit $[($a$)-$

$($b$)]$

e Textbook and MediaCommercial Model Compute the total cost per unit for each product under ABC. $($Round answers to $2$ decimal places, eg$.12\mathrm{.}25.)$

Home Model

Commercial Model

Total cost per unit Classify each of the activities as a value$-$added activity or a non$-$value$-$added activity.

Activity

Receiving

Forming

Assembling

Testing

Painting

Packing and shipping