FireOut 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-litre cylinder that holds 2.5 kilograms of multi-purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (10,200 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labour for completion. Therefore, total annual direct labour hours are 96,300 [1.5 hrs. x (54,000 + 10,200)]. Estimated annual manufacturing overhead is $1,502,280. Thus, the predetermined overhead rate is $15.60 ($1,502,280 96,300) per direct labour hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labour cost is $19 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Activity Cost Cost Drivers Estimated Pools Overhead Estimated Use of Cost Drivers Use of Drivers by Product Home Commercial Receiving Kilograms $70,350 335,000 215,000 120,000 Forming Machine $150,500 35,000 27,000 8,000 hours Assembling Number of $390,600 217,000 165,000 52,000 parts Testing Number of $51,000 25,500 15,500 10,000 tests Painting Litres $52,580 5,258 3,680 1,578 Packing and Kilograms $787,250 335,000 215,000 120,000 shipping Required 1. Calculate the total cost per unit for each product under traditional costing and under ABC. 14