Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2)

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Current Attempt in Progress Combat 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 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 fabor 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 Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Home Receiving Commercial 120,000 $83.750 335,000 215,000 Forming 149.100 35,000 27.000 8,000 Pounds Machine hours Number of parts Number of tests Assembling 403,620 217.000 165.000 52.000 Testing 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 (a) Your answer is correct. Under traditional product costing, compute the total unit cost of each product (Round answers to 2 decimal places, c-. 12.50) Home Model Commercial Model Total unit cost $ 6182 $ 69.87 e Textbook and Media Attempts: 2 of 3 used 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.3. 12.25.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving $ Pounds $ per pou Forming Machine hours $ Der mac hou Assembling Parts $ per par Testing Tests $ per Painting Gallons $ Der call Packing and shipping Pounds $ per pou

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Environmental Responsibility Accounting And Corporate Finance In The EU

Authors: Panagiotis Dimitropoulos, Konstantinos Koronios

1st Edition

3030727726, 9783030727727

More Books

Students also viewed these Accounting questions